Tamko trims spread on $600 million term loan B to Libor plus 325 bps

By Sara Rosenberg

New York, May 3 – Tamko Building Products Inc. reduced pricing on its $600 million seven-year term loan B (B2/BB-) to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, the company added a pricing step-down to the term loan to Libor plus 300 bps when first-lien net leverage is 3.5 times and the original issue discount was revised to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

J.P. Morgan Securities LLC is the lead bank on the deal.

Recommitments were scheduled to be due at noon ET on Friday, the source added.

Proceeds will be used to refinance existing debt and fund a redemption of equity interests.

Carlyle Global Partners is becoming a minority investor in the company.

Tamko is a Joplin, Mo.-based manufacturer of residential roofing products, decking and railing products, waterproofing, cements and coatings.

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