ElkCorp $1.575 billion credit facility expected as February business

By Sara Rosenberg

New York, Jan. 31 - ElkCorp's proposed $1.575 billion senior secured credit facility is anticipated to launch with a bank meeting sometime in February, according to a market source.

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

The facility consists of a $975 million seven-year term loan at Libor plus 275 basis points and a $600 million five-year revolver at Libor plus 150 bps with a 30 bps undrawn fee, according to recent filings with the Securities and Exchange Commission.

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

Over the past couple of weeks, there has been an ongoing bidding war between Building Materials and The Carlyle Group for ElkCorp.

However, on Wednesday, Carlyle dropped out of the race.

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.