Gundle/SLT sets price talk on $210 million facility as ratings emerge

By Sara Rosenberg

New York, May 9 - Gundle/SLT Environmental Inc. released price talk on its up to $210 million credit facility on the back of ratings coming out, according to a market source.

The $40 million to $45 million revolver and $125 million first-lien term loan are being talked at Libor plus 525 basis points to 550 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

And, the $40 million second-lien term loan is being talked at Libor plus 875 bps to 900 bps with a 1.5% Libor floor and an original issue discount of 98, the source continued.

The first-lien term loan has 101 soft call protection for one year, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

On Friday, ratings from Moody's Investors Service were announced at B3 on the revolver and first-lien term loan and Caa1 on the second-lien loan. Ratings from Standard & Poor's came out late Thursday at B- on the revolver and first-lien term loan and CCC+ on the second-lien term loan.

Jefferies & Co. and GE Capital Markets are the lead banks on the deal that will be used to refinance existing ABL credit facility debt and notes.

Leverage is 3.5 times through the first-lien and 4.8 times total.

Gundle/SLT is a Houston-based manufacturer and marketer of geosynthetic lining products and services.

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