Foundation Building talks term loan at Libor plus 350-375 bps

By Sara Rosenberg

New York, Jan. 25 – Foundation Building Materials Inc. launched on Monday its $1.26 billion seven-year covenant-lite first-lien term loan (B2/B) with price talk of Libor plus 350 basis points to 375 bps with a 0.5% 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.

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

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.

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