Oldcastle launches $1.29 billion term loan at SOFR plus 425-450 bps

By Sara Rosenberg

New York, April 4 – Oldcastle BuildingEnvelope (Oscar AcquisitionCo LLC) launched on Monday its $1.285 billion seven-year senior secured covenant-lite first-lien term loan B with price talk of SOFR+10 basis points CSA plus 425 bps to 450 bps with a 0.5% floor and an original issue discount of 97, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a first priority lien on substantially all existing and future material owned assets of the borrower and the subsidiary guarantors, all of the equity of the borrower held by Holdings and all the equity held directly by the borrower and the subsidiary guarantors, subject to customary exclusions and limitations.

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

Expected term loan ratings are B1/B.

Citigroup Global Markets Inc., JPMorgan Chase Bank, BNP Paribas Securities Corp., Mizuho, Macquarie Capital (USA) Inc., Goldman Sachs Bank USA, MUFG and Stifel are the joint lead arrangers on the deal. Citi is the administrative agent.

Commitments are due at noon ET on April 13, the source added.

Proceeds will be used to help fund the buyout of the company by KPS Capital Partners LP from CRH plc for an enterprise value of $3.8 billion. The consideration, payable on closing, includes cash of $3.45 billion together with a transfer of lease liabilities of $350 million.

Closing is expected this quarter, subject to customary conditions and regulatory approvals.

Oldcastle BuildingEnvelope is a supplier of value-added, glazing-focused, interior and exterior products and services.

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