SRS Distribution sets talk on $257 million in term loans with launch

By Sara Rosenberg

New York, June 6 – SRS Distribution Inc. released price talk on its $127 million incremental first-lien covenant-light term loan (B) due Aug. 25, 2022 and new $130 million second-lien covenant-light term loan (CCC+) due Feb. 25, 2023 with its bank meeting on Monday, according to a market source.

The first-lien term loan is talked at Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 900 bps with a 1% Libor floor and a discount of 97 to 98, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has call protection of 103 in year one, 102 in year two and 101 in year three.

Barclays and UBS Investment Bank are the bookrunners on the $257 million in term loans, with Barclays the left lead on the first-lien term loan and UBS left lead on the second-lien term loan.

Commitments are due at 5 p.m. ET on June 20, the source added.

Proceeds will be used with a $20 million draw under the company’s existing $275 million ABL facility to fund a dividend to existing shareholders.

Berkshire Partners LLC is the sponsor.

SRS Distribution is a McKinney, Texas-based roofing distributor.

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