Foundation Building to launch $1.26 billion term loan on Monday

By Sara Rosenberg

New York, Jan. 22 – Foundation Building Materials Inc. is scheduled to hold a lender call at 2 p.m. ET on Monday to launch a $1.26 billion seven-year covenant-lite first-lien term loan, according to a market source.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist are the lead arrangers on the deal.

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

Commitments are due at noon ET on Feb. 4.

Proceeds will be used to help fund the buyout of the company by American Securities LLC for $19.25 per share in an all-cash transaction valued at $1.37 billion, including outstanding debt, and the acquisition of Beacon’s interior construction products business for $850 million.

Other funds for the transaction will come from equity.

Closing is expected this quarter, 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.