84 Lumber cuts spread on $450 million term loan to SOFR plus 275 bps

By Sara Rosenberg

New York, Nov. 16 – 84 Lumber Co. reduced pricing on its $450 million seven-year covenant-lite term loan B (Ba2/BB-) to SOFR plus 275 basis points from SOFR plus 300 bps, 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% floor, 101 soft call protection for six months and amortization of 1% per annum.

Security is a first-priority lien on non-ABL collateral with a second-priority lien on all ABL collateral, subject to customary exclusions.

Wells Fargo Securities LLC is the left lead arranger on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Thursday, the source added. The original commitment deadline was planned to be noon ET on Friday.

Proceeds will be used with about $100 million of cash on hand to refinance an existing term loan B due 2026.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

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