Foundation Building modifies $1 billion term loan B-2 OID to 99

By Sara Rosenberg

New York, Jan. 25 – Foundation Building Materials tightened the original issue discount on its $1 billion seven-year term loan B-2 (B2/B) to 99 from 98.5, according to a market source.

Pricing on term loan B-2 remained at SOFR plus 400 basis points with a 0% floor.

The term loan B-2 still has 101 soft call protection for six months.

RBC Capital Markets, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., BofA Securities Inc., US Bank, Truist Securities, TD Securities (USA) LLC, KeyBanc Capital Markets and UBS Investment Bank are the joint lead arrangers on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, the source added.

Proceeds will be used to partially pay down a HoldCo seller note and to fund a shareholder dividend.

The company has an existing $1.28 billion term loan B-1 that is priced at SOFR+10 bps CSA plus 325 bps.

American Securities is the sponsor.

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

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