Gypsum Management to launch $481 million in term loans on Wednesday

By Sara Rosenberg

New York, Sept. 13 – Gypsum Management and Supply Inc. (GYP Holdings III Corp.) is scheduled to hold a lender call at 10 a.m. ET on Wednesday to launch $481 million in covenant-light first-lien term loans (B3/B+) due April 1, 2021, according to a market source.

Credit Suisse Securities (USA) LLC is the lead bank on the deal.

The debt is split between a $381 million existing term loan and a $100 million incremental term loan, the source said.

Price talk on the term debt is Libor plus 350 basis points with a 1% Libor floor, a par offer price on the existing loan and an original issue discount of 99.5 on the incremental loan, the source continued.

Included in the term loan debt is 101 soft call protection for six months.

Proceeds will be used to reprice the existing term loan from Libor plus 375 bps with a 1% Libor floor and to pay down a portion of the company’s revolver borrowings.

Commitments are due at 5 p.m. ET on Sept. 20, the source added.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.