Cornerstone launches $410 million term loan at SOFR plus 562.5 bps

By Sara Rosenberg

New York, July 13 – Cornerstone Building Brands Inc. launched on Wednesday its $410 million six-year covenant-lite first-lien term loan (B2/B) with price talk of SOFR plus 562.5 basis points with a 0.5% floor and an original issue discount of 93, according to a market source.

The term loan is non-callable for two years, then at 75% of the coupon in year three and 37.5% of the coupon in year four.

Deutsche Bank Securities Inc., UBS Investment Bank, Barclays, BNP Paribas Securities Corp., RBC Capital Markets, Societe Generale, Goldman Sachs Bank USA, Natixis and Jefferies LLC are the bookrunners on the deal. Deutsche Bank and UBS are the co-left leads.

Commitments are due at 10 a.m. ET on Tuesday.

Proceeds will be used with $600 million of additional secured debt and $464 million of PIK HoldCo debt to fund the acquisition of 51% of shares outstanding in the company by Clayton, Dubilier & Rice, who currently owns about 49% of the company.

Under the agreement, Cornerstone shareholders will receive $24.65 in cash per share. The transaction has an enterprise value of about $5.8 billion.

Cornerstone is a Cary, N.C.-based manufacturer of exterior building products.

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