Gypsum Management sets talk on first-and second-lien term loans

By Sara Rosenberg

New York, March 11 - Gypsum Management and Supply Inc. (GYP Holdings III Corp.) released price talk on its $390 million seven-year first-lien covenant-light term loan (B3) and $160 million eight-year second-lien covenant-light term loan (Caa2) in connection with its launch on Tuesday, according to a market source.

The first-lien term loan is talked at Libor plus 350 basis points with a 1% Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor and a discount of 99, the source said.

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 company's $750 million credit facility also provides for a $200 million ABL revolver.

Commitments are due at noon ET on March 25, the source added.

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.

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

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

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