United Central Industrial to launch $435 million facility Wednesday

By Sara Rosenberg

New York, Sept. 4 - United Central Industrial Supply Co. LLC (United Distribution Group) has set a bank meeting for Wednesday to launch a proposed $435 million senior secured covenant-light credit facility, according to a market source.

Barclays and Goldman Sachs & Co. are the lead banks on the deal.

The facility consists of a $50 million five-year revolver, a $285 million six-year term loan and a $100 million 61/2-year second-lien term loan, the source said.

Proceeds will be used to help fund the acquisition of GHX Holdings, a Houston-based distributor of industrial gaskets, hoses and related fluid sealing products, from CapStreet Group LLC.

Leverage is 3.9 times through the senior secured debt and 5.25 times total, excluding synergies, the source added.

United Central is a Bristol, Tenn.-based distributor of industrial supplies and services.

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