Continental gets restated $275 million term loan, $75 million revolver

By Angela McDaniels

Tacoma, Wash., Aug. 22 – Continental Building Products, Inc. entered into an amended and restated credit agreement on Thursday that provides for a $275 million senior secured term loan and a $75 million senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver and the term loan mature in 2021 and 2023, respectively.

The interest rate is Libor plus 275 basis points with a 0.75% Libor floor for the term loan and Libor plus 225 bps for the revolver.

The revolver commitments are subject to a facility fee of 50 bps. If the company’s senior secured leverage ratio drops to 1.75 times or less, the facility fee will be 37.5 bps.

The amended credit agreement includes an accordion option equal to the sum of $100 million plus the amount of all optional prepayments of term loan and revolver borrowings plus amounts as would not cause the first-lien leverage ratio, determined on a pro forma basis after giving effect to any such additional and increase, to exceed 3.5 times.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the joint lead arrangers and bookrunners. Citigroup, Deutsche Bank and RBC are the co-syndication agents. PNC Bank, NA and Bank of Nova Scotia are the co-documentation agents. Credit Suisse AG is the administrative agent.

For the revolver, the amended credit agreement requires that the company cap its total leverage ratio at 5 times if the amount drawn under the revolver exceeds 30% of the revolver commitments.

On the closing date, the company terminated its first-lien credit agreement dated Aug. 30, 2013. All $274 million of outstanding loans and letters of credit under that credit agreement were rolled over to the amended credit agreement.

The previous term loan was due to mature in 2020 and had an interest rate of Libor plus 300 bps with a 1% Libor floor.

Continental is a Herndon, Va.-based manufacturer of wallboard and gypsum-based products.

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