Roofing Supply $290 million term B spread set at Libor plus 525 bps

By Sara Rosenberg

New York, May 24 - Roofing Supply Group LLC finalized pricing on its $290 million seven-year term loan B (B2/B) at Libor plus 525 basis points, the wide side of revised talk of Libor plus 500 bps to 525 bps, according to a market source.

At launch, the loan had been talked at Libor plus 450 bps.

As before, the loan includes a 1.25% Libor floor, an original issue discount of 99 and 101 soft call protection for one year.

The company's $465 million credit facility also provides for a $175 million five-year ABL revolver.

Deutsche Bank Securities Inc., Goldman Sachs & Co., Credit Suisse Securities (USA) LLC, UBS Investment Bank and Citigroup Global Markets Inc. are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of the company by Clayton, Dubilier & Rice LLC from the Sterling Group.

Other funds for the transaction are coming from $200 million of notes that priced on Thursday at par to yield 10%.

Roofing Supply, a Dallas-based wholesale distributor of roofing supplies and related materials, expects to close on the buyout this quarter.

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