PrimeSource lifts term loan B to $355 million as notes are downsized

By Sara Rosenberg

New York, May 1 – PrimeSource Building Products (PriSo Acquisition Corp.) upsized its seven-year covenant-light term loan B (B2/B+) to $355 million from $325 million and trimmed its senior notes offering to $200 million from $230 million, according to a market source.

Pricing on the term loan B is still Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 99˝.

Earlier in syndication, the spread on the term loan B was reduced from Libor plus 425 bps and the discount was tightened from 99.

The term loan B continues to have 101 soft call protection for six months and amortization of 1% per annum.

Recommitments were due by 10:15 a.m. ET on Friday, the source added.

Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are the bookrunners on the deal.

The company’s now $655 million credit facility, up from $625 million, also includes a $300 million ABL revolver.

Proceeds from the credit facility and notes, which priced at 9%, will be used to help fund the buyout of the company by Platinum Equity LLC from Itochu.

PrimeSource is a Dallas-based two-step building products distributor.

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