Goodman Global reveals price talk on $2.03 billion credit facility

By Sara Rosenberg

New York, Oct. 7 - Goodman Global Group Inc. came out with price talk on its proposed $2.025 billion secured credit facility as the deal was launched to lenders with a conference call, according to a market source.

The $250 million revolver (Ba3/B+) and $1.4 billion first-lien term loan (Ba3/B+) are being talked at Libor plus 450 basis points, and the $375 million second-lien term loan (B3/B-) is being talked at Libor plus 800 bps, the source said.

The first-lien term loan has a 1.75% Libor floor and is being offered at an original issue discount of 981/2.

And, the second-lien term loan has a 2% Libor floor, is being offered at an original issue discount of 971/2, and is non-callable for one year, then at 103 in year two, 102 in year three and 101 in year four, the source continued.

JPMorgan is the left lead bank on the deal.

Proceeds will be used to repay substantially all of the company's outstanding debt, to fund a distribution to equityholders and for other general corporate purposes.

Goodman is a Houston-based manufacturer of heating, ventilation and air conditioning products for residential and light commercial use.

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