PrimeSource launches $325 million term loan B at Libor plus 425 bps

By Sara Rosenberg

New York, April 21 – PrimeSource Building Products (PriSo Acquisition Corp.) launched on Tuesday its $325 million seven-year covenant-light term loan B (B2/B+) with price talk of Libor plus 425 basis points with a 1% Libor floor and an original issue discount of 99, according to a market source.

As previously reported, the term loan B has 101 soft call protection for six months and amortization of 1% per annum.

Commitments are due at noon ET on May 1, the source said.

Deutsche Bank Securities Inc., BMO Capital Markets, Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Nomura are the bookrunners on the deal.

The company’s $625 million credit facility also includes a $300 million ABL revolver.

Proceeds will be used to help fund the buyout of the company by Platinum Equity LLC from Itochu.

Other funds for the transaction will come from $230 million of senior notes.

PrimeSource is a Dallas-based two-step building products distributor.

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