Installed Building talks $500 million loan at Libor plus 225-250 bps

By Sara Rosenberg

New York, Dec. 1 – Installed Building Products Inc. launched on Wednesday its $500 million seven-year term loan B (Ba2/BB+) with price talk of Libor plus 225 basis points to 250 bps with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum.

Mandatory prepayments are from 50% excess cash flow sweep, with step-downs to 25% at 2.25x first-lien net leverage and 0% at 1.75x first-lien net leverage, 100% of the net cash proceeds of all non-ordinary-course asset sales, with step-downs to 50% at 1.75x first-lien net leverage and 0% at 1.50x first-lien net leverage, with customary reinvestment rights, and 100% of the net cash proceeds from debt issuances, other than permitted debt.

RBC Capital Markets is the left lead on the deal.

Commitments are due at noon ET on Dec. 14, the source added.

Proceeds will be used to refinance an existing $200 million term loan B due April 2025 as well as for acquisitions, other growth initiatives and general corporate purposes.

Closing is expected in December.

Installed Building Products is a Columbus, Ohio-based installer of insulation and complementary building products.

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