Interior Logic firms $230 million incremental term loan B OID at 98

By Sara Rosenberg

New York, June 10 – Interior Logic Group (Signal Parent Inc.) finalized the original issue discount on its $230 million incremental senior secured covenant-lite first-lien term loan B (B1/B) due April 1, 2028 at 98, the wide end of the 98 to 98.5 talk, according to a market source.

Pricing on the incremental term loan is Libor plus 350 basis points with a 0.75% Libor floor, in line with existing term loan pricing.

The incremental term loan has 101 soft call protection until Oct. 1 and amortization of 1% per annum.

Mandatory prepayments are from 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 security interest in any ABL priority collateral.

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

Proceeds will be used to fund the acquisition of Residential Design Services from Select Interior Concepts Inc. for about $215 million.

Closing is expected in late June.

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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