US LBM to launch $100 million tack-on term loan on Wednesday

By Sara Rosenberg

New York, Feb. 17 – US LBM is scheduled to hold a call at 2 p.m. ET on Wednesday to launch a $100 million tack-on senior secured term loan due May 2020, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

Price talk on the tack-on term loan is Libor plus 700 basis points with a 1% Libor floor and an original issue discount of 98, the source said.

The spread and the floor on the tack-on term loan matches existing term loan pricing.

The debt has call protection of 102 through November 2015, then 101½ for a year and 101 for the following year.

Covenants include a maximum total net leverage ratio.

Proceeds from the tack-on loan will be used to fund an acquisition and repay ABL facility borrowings.

Commitments are due at 5 p.m. ET on Monday, the source added.

US LBM is a Green Bay, Wis.-based owner of building material distribution businesses.

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