Foundation Building plans ABL facility, term loan for buyout

By Sara Rosenberg

New York, Nov. 24 – Foundation Building Materials Inc. has received a commitment for an ABL facility and a first-lien term loan to help fund its acquisition by American Securities LLC, according to a PREM14C filed with the Securities and Exchange Commission on Tuesday.

Credit Suisse and BofA Securities Inc. provided the debt commitment.

Under the agreement, Foundation Building is being bought for $19.25 per share in an all-cash transaction valued at $1.37 billion, including outstanding debt.

Other funds for the transaction will come from equity.

Closing is expected in the first quarter of 2021, subject to customary conditions and receipt of regulatory clearances.

Foundation Building is a Santa Ana, Calif.-based distributor of specialty building products, including wallboard, suspended ceiling systems, metal framing and other products.

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