Goodman $800 million term loan B flexes up to Libor plus 425 bps, OID 96

By Sara Rosenberg

New York, Feb. 4 - Goodman Global Inc. raised pricing on its $800 million term loan B (Ba3/BB) to Libor plus 425 basis points from initial talk of Libor plus 375 bps, and increased the original issue discount to 96 from 981/2, according to a market source.

Furthermore, a 3.25% Libor floor to maturity was added to the term loan B.

Goodman's $1.1 billion senior secured credit facility also includes a $300 million ABL revolver priced at Libor plus 200 bps.

Barclays Capital, Calyon and GE Capital are the lead banks on the deal, with Barclays the left lead on the term loan B 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.

Other financing will come from $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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