Guilford Mills $215 million credit facility set to launch Thursday

By Sara Rosenberg

New York, April 27 - Specific timing and structure on Guilford Mills Inc.'s proposed credit facility surfaced, with a bank meeting slated for Thursday for the $215 million deal, according to an informed source. Goldman Sachs is the lead bank on the deal.

The facility consists of a $40 million revolver, a $100 million term loan B and $75 million second lien term loan.

Price talk on the tranches is still not available.

Leverage through the first lien is 2x and leverage through the second lien is 3.5x, the source added.

Proceeds will be used to help fund Cerberus Capital Management's leveraged buyout of the company. However, the actual acquisition was completed earlier this month when GMI Merger Corp., an affiliate of Cerberus, completed a cash tender offer for the outstanding shares of Guilford Mills at $19 per share.

Guilford Mills is a Greensboro, N.C., designer and manufacturer of engineered fabrics for automotive, technical and apparel applications.

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