Building Materials sets Wednesday launch for $1.575 billion credit facility

By Sara Rosenberg

New York, Feb. 16 - Building Materials Corp. of America has scheduled a bank meeting for Wednesday to launch its proposed $1.575 billion senior secured credit facility, according to a market source.

Previously, all that was known on timing for the deal was that it would be February business.

Deutsche Bank, Bear Stearns and JPMorgan are the lead banks on the credit facility.

Tranching is comprised of a $975 million seven-year term loan B and a $600 million five-year ABL revolver, the source said.

No official price talk on the transaction is out as of yet, and is not expected to emerge until the bank meeting, the source added. However, according to various filings with the Securities and Exchange Commission, the term loan B is expected at Libor plus 275 basis points and the revolver is expected at Libor plus 150 bps with a 30 bps undrawn fee.

Proceeds from the facility, along with $325 million in senior secured notes, will be used to help fund the acquisition of ElkCorp for $43.50 per share.

Building Materials is a Wayne, N.J.-based building products company. ElkCorp is a Dallas-based manufacturer of roofing and building products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.