GMS unit ups revolving commitments to $950 million, extends five years

By Mary-Katherine Stinson

Lexington, Ky., Dec. 23 – GMS Inc.’s indirect subsidiary GYP Holdings III Corp. entered a second amended and restated ABL credit agreement (BB-) among GYP Holdings II Corp. as holdings, GYP III as the U.S. borrower and Titan GMS LP as the Canadian borrower, according to an 8-K filing with the Securities and Exchange Commission.

The ABL agreement amends the company’s existing asset-based revolving credit facility by, among other things, increasing the revolving commitments available to $950 million.

The agreement also added the company’s indirect Canadian subsidiaries as credit parties under the agreement and included certain assets of the Canadian subsidiaries in the borrowing base with the ability to borrow in Canadian dollars in an amount not to exceed $200 million.

The maturity date was extended by five years from closing.

Additionally, the incremental debt capacity available was increased.

The revolving loans available under the ABL credit agreement bear interest at a floating rate per annum ranging from SOFR, or CDOR in the case of Canadian dollar revolving loans, plus 135 basis points to 160 bps determined using a pricing grid based upon the average excess availability under the facility. The initial rate is SOFR plus 160 bps.

The commitment fee is 25 bps.

The loans are secured by a first-priority security interest in substantially all of the current assets of the company and its subsidiaries and a second-priority security interest in substantially all of the fixed assets of the company and its subsidiaries subject to exclusions.

Wells Fargo Bank, NA is the administrative agent and collateral agent.

Truist Bank is the syndication agent.

Citizens Bank, NA and JPMorgan Chase Bank, NA are the co-documentation agents.

Wells Fargo Bank, NA and Truist Securities LLC are the joint bookrunners and lead arrangers.

In connection with the ABL credit agreement, the company also amended its existing senior term loan facility, entering a fifth amendment to the first lien credit agreement among the company, GYP II , certain subsidiaries and Credit Suisse AG, Cayman Islands Branch as administrative agent, and delivered a supplemental indenture regarding its existing senior notes.

The term loan amendment permits the Canadian subsidiaries to become loan parties under the term loan agreement, allows for the ABL credit agreement and replaces the benchmark rate with term SOFR from the previous Libor.

The debt and obligations under the term loan are secured by a second-priority security interest in substantially all of the current assets of the company and its subsidiaries and a first-priority security interest in substantially all of the fixed assets of the company and its subsidiaries subject to exclusions.

In respect of the company’s senior notes, the Canadian subsidiaries entered into a supplemental indenture, among GYP III as issuer, GYP II, certain subsidiaries and U.S. Bank NA as trustee for the company’s 4.625% senior notes due 2029 that were issued in April 2021.

GMS is a Tucker, Ga.-based distributor of interior construction 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.