Hanson Building to launch roughly $1 billion facility on Thursday

By Sara Rosenberg

New York, Feb. 11 – Hanson Building Products is set to hold a bank meeting at 2:30 p.m. ET in New York on Thursday to launch a $1,045,000,000 credit facility, according to a market source.

Credit Suisse Securities (USA) LLC, Barclays and Citigroup Global Markets Inc. are the lead banks on the deal.

The facility consists of a $150 million ABL revolver, a $595 million seven-year first-lien covenant-light term loan and a $300 million eight-year second-lien covenant-light term loan, the source said.

Both term loans have a 1% Libor floor, the source continued.

Commitments are due on Feb. 26.

Proceeds will be used to help fund the buyout of the company by Lone Star Funds from HeidelbergCement for $1.4 billion, of which up to $100 million will be payable in 2016, depending on the performance of the business in 2015.

Closing is expected this quarter, subject to the satisfaction of customary conditions.

Hanson Building Products is a manufacturer of concrete and clay building products.

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