Goodman term B talked at Libor plus 375 bps, ABL revolver at Libor plus 200 bps

By Sara Rosenberg

New York, Jan. 15 - Goodman Global Inc. launched its $800 million term loan B (Ba3) with price talk of Libor plus 375 basis points on Tuesday morning and its $300 million ABL revolver with talk of Libor plus 200 bps, according to a market source.

The term loan is being offered t to investors at an original issue discount of 981/2, the source said.

Upfront fees on the revolver are not yet available, the source added.

Barclays Capital, Calyon and GE Capital are the lead banks on the $1.1 billion senior secured deal, with Barclays the left lead on the term loan and GE the left lead on the revolver.

Proceeds will be used to help fund the buyout of the company by Hellman & Friedman LLC for $25.60 in cash per share. The transaction is valued at $2.65 billion.

In addition, the company plans on getting $500 million of senior subordinated financing from vehicles managed by GSO Capital Partners and Farallon Capital Management, LLC, according to filings with the Securities and Exchange Commission.

On a gross basis, senior leverage is 3.4 times and total leverage is 5.2 times.

Goodman Global is a Houston-based manufacturer of residential and light commercial heating, ventilation and air-conditioning equipment.

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