Hanson Building lifts pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Feb. 26 – Hanson Building Products increased pricing on its $595 million seven-year first-lien covenant-light term loan (B1/B+) to Libor plus 550 basis points from Libor plus 525 bps and on its $300 million eight-year second-lien covenant-light term loan (Caa1/CCC+) to Libor plus 950 bps from Libor plus 900 bps, according to a market source.

Also, the original issue discount on the first-lien term loan widened to 97 from 99 and the discount on the second-lien term loan was revised to 95 from 98, the source said.

Furthermore, the second-lien loan is now non-callable for one year, then at 103 in year two and 101 in year three, modified from having call protection of 103 in year one, 102 in year two and 101 in year three.

Both term loans still have a 1% Libor floor and the first-lien term loan still has 101 soft call protection for one year.

The company’s $1,045,000,000 credit facility also provides for a $150 million ABL revolver.

Recommitments are due at 5 p.m. ET on Friday, the source added.

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

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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