Gypsum Management to launch $750 million credit facility on Tuesday

By Sara Rosenberg

New York, March 7 - Gypsum Management and Supply Inc. (GYP Holdings III Corp.) is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $750 million credit facility, according to a market source.

The facility consists of a $200 million ABL revolver, a $390 million seven-year first-lien covenant-light term loan and a $160 million eight-year second-lien covenant-light term loan, the source said.

Credit Suisse Securities (USA) LLC, RBC Capital Markets and UBS Securities LLC are the lead banks on the term loans. RBC is leading the revolver.

Included in the first-lien term loan is 101 soft call protection for six months and the second-lien term loan has call protection of 102 in year one and 101 in year two, the source said.

Proceeds will be used to help fund the buyout of the company by AEA Investors.

Commitments are due at noon ET on March 24, the source added.

Gypsum Management and Supply is a Tucker, Ga.-based distributor of drywall, acoustical and other specialty building materials.

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