Associated Materials to add $143.5 million to credit facility for Gentek acquisition

By Carlise Newman

Chicago, July 31 - Associated Materials Inc. said it plans to increase its existing credit facility by $143.5 million to help fund its acquisition of Gentek Holdings Inc.

The expansion will be through an amendment to its existing $165 million credit facility and will be on the same terms as the existing loans.

Associated Materials said it plans to add a term loan facility for an additional $113.5 million and to expand its revolving loan facility to $70 million from $40 million, including a new Canadian sub-facility of $15 million.

UBS, Credit Suisse First Boston and CIBC World Markets are the lead banks on the amendment of the credit facility.

Associated Materials, a Cuyahoga Falls, Ohio-based building materials supplier, said Thursday it will acquire Gentek and repay all the debt of Gentek and its subsidiaries for $118 million in cash, which includes an estimated working capital adjustment.

The acquisition is expected to close by the end of August.

Associated Materials obtained its current facility in April 2002 as a $125 million seven-year term loan with an interest rate of Libor plus 375 basis points and a $40 million five-year revolver with an interest rate of Libor plus 300 basis points. The loan was obtained to help fund a leveraged buy out by Harvest Partners Inc.

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