Foundation Building firms $450 million term B at Libor plus 325 bps

By Sara Rosenberg

New York, May11 – Foundation Building Materials Holdings Co. LLC finalized pricing on its $450 million seven-year covenant-light term loan B (B3/B+) at Libor plus 325 basis points, the low end of the Libor plus 325 bps to 350 bps talk, according to a market source.

Also, the original issue discount was tightened to 99.75 from 99.5, the source said.

The term loan has a 25 bps pricing step-down at 4 times first-lien net leverage, a 0% Libor floor, 101 soft call protection for six months and a ticking fee of half the margin from days 46 to 90 and the full margin plus Libor thereafter.

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

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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