Ply Gem steady with acquisition news; Golden State Medical pulled; Aristocrat readies loan

By Sara Rosenberg

New York, Aug. 20 – Ply Gem Holdings Inc.’s term loan was steady in the secondary market on Wednesday with news that additional debt will be used to fund an acquisition.

Meanwhile, in the primary, Golden State Medical Supply decided to postpone its credit facility, and Aristocrat Leisure Ltd. emerged with plans to launch a new institutional term loan next month.

Ply Gem holds firm

Ply Gem’s term loan was unchanged in trading on Wednesday at 98 1/8 bid, 98 3/8 offered following an announcement that the company will use new debt and cash on hand to fund its roughly $130 million acquisition of Simonton Windows from Fortune Brands Home & Security Inc., according to a trader.

Closing is expected in October, subject to customary conditions, including antitrust approval.

The company said in a news release that the acquisition is expected to be credit accretive after giving effect to anticipated cost savings and synergies.

Ply Gem is a Cary, N.C.-based manufacturer of exterior building products. Simonton is a Columbus, Ohio-based vinyl window and patio door manufacturer.

Golden State withdrawn

Moving to the primary, Golden State Medical Supply removed its $160 million credit facility (B3) from the market due to unfavorable conditions, a market source said.

The facility consisted of a $15 million five-year revolver, and a $145 million six-year term loan talked at Libor plus 550 basis points with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

Jefferies Finance LLC was leading the deal that was going to be used to refinance existing debt and fund a dividend.

Golden State Medical is a Camarillo, Calif.-based supplier of pharmaceuticals and emergency medical supplies.

Aristocrat on deck

Aristocrat Leisure set a bank meeting for Sept. 10 to launch a $1.3 billion seven-year term loan B, according to a market source.

UBS Securities LLC, Bank of America Merrill Lynch, Nomura and Citigroup Global Markets Inc. are leading the deal that will be used to fund the acquisition of Video Gaming Technologies Inc. for around $1,283,000,000 in cash.

The transaction is subject to certain adjustments and regulatory approvals.

Aristocrat Leisure is an Australia-based provider of gaming services. Video Gaming Technologies is a Franklin, Tenn.-based designer, manufacturer, distributor and operator of gaming player terminals and centrally determined gaming systems.

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