Interline Brands to repay some term, bond debt with IPO proceeds

By Sara Rosenberg

New York, June 15 - Interline Brands Inc. plans to use $32 million of the proceeds from its initial public offering of common stock to repay some of its term loan debt and $78.1 million to repurchase or redeem its 11.5% senior subordinated notes due May 15, 2011, including $8.1 million of premiums payable upon early redemption, according to an S-1 filed with the Securities and Exchange Commission on Tuesday.

Of the remaining proceeds from the $230 million IPO, the company will use $55 million to pay a consideration to holders of preferred stock, $7 million to terminate interest rate swap agreements, $16.8 million for transaction fees and expenses and $11.1 million for general corporate purposes.

Furthermore, the company intends to amend its credit facility in connection with the stock offering, the filing added. No further details on the amendment were available prior to press time.

Following the IPO, the credit facility will include a $104.5 million term loan and a $65 million revolver, both due Nov. 29, 2009. The term loan carries an interest rate of Libor plus 350 basis points. Credit Suisse First Boston LLC is the administrative agent under the credit facility and J.P. Morgan Chase Bank is the syndication agent.

Interline Brands is a Jacksonville, Fla., distributor and direct marketer of specialty maintenance, repair and operations products.

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