Foundation Building talks $450 million loan at Libor plus 325-350 bps

By Sara Rosenberg

New York, April 27 – Foundation Building Materials Holdings Co. LLC launched on Friday its $450 million seven-year covenant-light term loan B with price talk of Libor plus 325 basis points to 350 bps with no Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

RBC Capital Markets, Goldman Sachs Bank USA, SunTrust Robinson Humphrey Inc. and Stifel are the bookrunners on the deal.

Commitments are due at 5 p.m. ET on May 10, the source added.

Proceeds will be used, along with an asset-based revolver draw, to redeem the company’s existing 8¼% senior secured notes due 2021 and pay related expenses.

Foundation Building is a Tustin, Calif.-based building material company.

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