Interior Logic launches $550 million term B at Libor plus 350-375 bps

By Sara Rosenberg

New York, March 15 – Interior Logic Group Holdings LLC (Signal Parent Inc.) launched on its call on Monday a $550 million seven-year senior secured covenant-lite first-lien term loan B (B1/B) that is talked at Libor plus 350 basis points to 375 bps with a 0.75% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months, subject to customary carve-outs, and amortization of 1% per annum, the source said.

Mandatory prepayments are form 50% of excess cash flow proceeds, subject to leverage based step-downs, 100% of net cash proceeds from non-ordinary course asset sales, subject to leveraged based step-downs and customary reinvestment rights, and 100% of debt issue proceeds other than debt permitted.

Security is a perfected first priority interest in substantially all tangible and intangible assets and capital stock of the borrower and guarantors, limited to 65% of the capital stock of first tier foreign subsidiaries and subject to other customary and appropriate exceptions, and a perfected second priority interest in any ABL priority collateral.

Citigroup Global Markets Inc., Goldman Sachs Bank USA, BofA Securities Inc. and RBC Capital Markets are the arrangers on the deal. Blackstone is a co-manager. Citi is the administrative agent.

Commitments are due at 5 p.m. ET on March 24, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone from Littlejohn & Co. LLC, Platinum Equity and other equity holders for a total transaction value of $1.6 billion.

Closing is expected by the end of this month.

Interior Logic is an Irvine, Calif.-based provider of interior design, supply chain and installation management solutions to single-family homebuilders.

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