| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers I > Headlines for Installed Building Products, Inc. > News item |
Installed Building talks $300 million term B at Libor plus 325-350 bps
By Sara Rosenberg
New York, March 21 – Installed Building Products Inc. launched on Tuesday its $300 million seven-year covenant-light term loan B with price talk of Libor plus 325 basis points to 350 bps with a 1% Libor floor and an original issue discount of 99 to 99.5, according to a market source.
The term loan B has 101 soft call protection for six months and amortization of 1% per annum.
Mandatory prepayments on the term loan B are from a 50% excess cash flow sweep, with step-downs to 25% at 2.25 times senior secured net leverage and 0% at 1.75 times senior secured net leverage; 100% of the net cash proceeds of all non-ordinary-course asset sales; and 100% of the net cash proceeds of the issuances of debt obligations other than permitted debt, but excluding refinancing debt.
The company’s $400 million senior secured credit facility also includes a $100 million five-year ABL revolver.
Pricing on the revolver is expected to range from Libor plus 125 bps to 175 bps based on excess availability, and the unused fee is expected to range from 25 bps to 37.5 bps based on utilization.
The revolver has a $50 million incremental allowance.
RBC Capital Markets, UBS Investment Bank and Jefferies Finance LLC are the joint bookrunners on the deal.
Commitments are due on March 31.
Proceeds will be used to refinance about $96 million of term loan borrowings and about $125 million outstanding under a delayed-draw term loan and to add cash to the balance sheet.
Net leverage is 2.1 times.
Closing is expected during the week of April 3.
Installed Building Products is a Columbus, Ohio-based installer of insulation products.
© 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.