By Paul A. Harris
Portland, Ore., July 17 - Interline Brands Inc. priced a $365 million issue of senior PIK toggle notes due Nov. 15, 2018 (Caa1/B-/) at par to yield 10% on Tuesday, according to a market source.
The yield printed at the tight end of the 10% to 10¼% price talk.
Goldman Sachs & Co. and Bank of America Merrill Lynch were the joint bookrunners.
Proceeds will be used to help fund the acquisition of Interline by GS Capital Partners LP and P2 Capital Partners LLC.
The purchase price is expected to be $854.3 million, the fees and expenses are estimated at $62.2 million, and the buyers will assume Interline's $300 million of 7% senior subordinated notes due 2018.
Other funding for the acquisition is expected to include a $250 million ABL facility due 2017, $74.4 million of balance sheet cash and $409.3 million of equity and additional cash contributions.
The amounts are estimated as if the acquisition had closed on March 31. The company said the actual amounts are subject to adjustment.
Interline is a Jacksonville, Fla.-based distributor and direct marketer of broad-line maintenance, repair and operations products.
| Issuer: | Interline Brands Inc.
|
| Amount: | $365 million
|
| Maturity: | Nov. 15, 2018
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Goldman Sachs & Co., Bank of America Merrill Lynch
|
| Cash coupon: | 10%
|
| PIK coupon: | 10¾%
|
| Price: | Par
|
| Yield: | 10%
|
| Spread: | 918 bps
|
| Cal protection: | 2.25 years
|
| Trade date: | July 17
|
| Settlement date: | Aug. 6
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A
|
| Yield talk: | 10% to 10¼%
|
| Marketing: | Roadshow
|
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