SRS Distribution flexes $700 million term loan to SOFR plus 350 bps

By Sara Rosenberg

New York, Jan. 11 – SRS Distribution Inc. reduced pricing on its non-fungible $700 million incremental term loan due 2028 (B2/B-) to SOFR plus 350 basis points from SOFR plus 375 bps and added a 25 bps step-down at 3.6x net first-lien leverage, according to a market source.

Also, the original issue discount on the term loan firmed at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan still has 10 bps CSA, a 0.5% floor and 101 soft call protection for six months.

BofA Securities Inc. and Barclays are the leads on the deal.

Commitments are due at 5 p.m. ET on Wednesday, accelerated from noon ET on Thursday, the source added.

Proceeds will be used to help fund acquisitions, including the recently completed purchase of AquaCentral, a distributor of pool equipment and supplies, from Tenex Capital Management.

SRS Distribution is a McKinney, Tex.-based building materials distributor.

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