Gypsum Management reworks first- and second-lien term loan spreads

By Sara Rosenberg

New York, March 26 - Gypsum Management and Supply Inc. (GYP Holdings III Corp.) raised pricing on its $390 million seven-year first-lien covenant-light term loan (B3/B) to Libor plus 375 basis points from Libor plus 350 bps, according to a market source.

Meanwhile, pricing on the $160 million eight-year second-lien covenant-light term loan (Caa2/CCC+) was reduced to Libor plus 675 bps from Libor plus 700 bps, the source said.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99½ and 101 soft call protection for six months, and the second-lien term loan has a 1% Libor floor, a discount of 99 and call protection of 102 in year one and 101 in year two.

Recommitments were due at 5 p.m. ET on Wednesday, the source added.

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

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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