84 Lumber readies launch of $310 million term loan B for Tuesday

By Sara Rosenberg

New York, Oct. 28 – 84 Lumber Co. is scheduled to hold a lender call at noon ET on Tuesday to launch a $310 million seven-year covenant-lite term loan B, according to a market source.

Wells Fargo Securities LLC and PNC Capital Markets are the lead arrangers on the deal.

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

Security is a first-priority lien on non-ABL collateral, including a pledge of all the capital stock of restricted subsidiaries held by the borrower and each guarantor, and a second-priority lien on all ABL collateral, and, with some exclusions, on material real property.

Commitments are due at 5 p.m. ET on Nov. 7, the source added.

Proceeds will be used to refinance the company’s existing ABL revolving credit facilities and existing term loan B due 2023, and to pay related transaction fees and expenses.

84 Lumber is an Eighty Four, Pa.-based supplier of building materials, manufactured components and services for single and multi-family residences and commercial buildings.

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