Goodman reveals credit facility size of $500 million as Thursday launch is set

By Sara Rosenberg

New York, Nov. 29 - Details on Goodman Global Holdings Inc.'s proposed $500 million credit facility surfaced Monday and scheduling for the bank meeting firmed up with the launch set to take place on Thursday, according to a market source. JPMorgan, UBS Securities and Credit Suisse First Boston are the lead banks on the deal, with JPMorgan left lead.

The facility consists of a $350 million term loan B with early price talk in the Libor plus 225 basis points area and a $150 million revolver, the source said.

Proceeds from the credit facility, along with a bond offering, will be used to help fund Apollo Management LP's leveraged buyout of the company.

Under the agreement, Apollo will acquire Goodman for approximately $1.43 billion. Members of the Goodman family will retain a significant investment in the company. Also acquiring an interest in the new company are members of Goodman's senior management team.

Closing of the acquisition, which is expected to occur in the first quarter of 2005, is subject to obtaining approvals under the Hart-Scott-Rodino Antitrust Improvements Act and other customary closing conditions for transactions of this nature.

Goodman is a Houston-based heating and air conditioning manufacturer.

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