ABC upsizes term loan to $1.25 billion, flexes to Libor plus 275 bps

By Sara Rosenberg

New York, April 4 - ABC Supply Holding Corp. increased its term loan B (B1/BB+) to $1.25 billion from $1.15 billion and reduced pricing to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

Also, the Libor floor on the term loan B was revised to 0.75% from 1%, and the offer price was tightened to par from 991/2, the source said.

The B loan has 101 soft call protection for one year, revised from six months.

In addition to the term loan B, the company's now $2 billion senior secured credit facility, up from $1.9 billion, includes a $750 million ABL revolver.

BofA Merrill Lynch, Deutsche Bank Securities Inc. and UBS Investment Bank are leading the deal that launched with a bank meeting on March 27.

Proceeds from the credit facility will be used to help redeem all of the company's shares held by its minority shareholders, an investor group led by Advent International.

At closing of the transaction, 100% of the shares of ABC Supply will be controlled by the company's co-founder, Diane M. Hendricks.

Other funds for the transaction will come from $500 million of senior notes that were downsized from $600 million with the term loan upsizing, the source added.

ABC is a Beloit, Wis.-based wholesale distributor of roofing, siding, windows and other select exterior building products.

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