Quikrete readies launch of $300 million in term loans for Wednesday

By Sara Rosenberg

New York, Nov. 29 – Quikrete Co. is scheduled to hold a lender call at 11 a.m. ET on Wednesday to launch $300 million in term loans, according to a market source.

Wells Fargo Securities LLC is the lead bank on the deal.

The debt consists of a fungible $100 million covenant-light add-on first-lien term loan and a $200 million 7.5-year covenant-light second-lien term loan, the source said.

The add-on first-lien term loan is priced at Libor plus 325 basis points with a 0.75% Libor floor and has 101 soft call protection for six months.

Original issue discount on the add-on first-lien term loan is not yet available.

Included in the second-lien term loan is call protection of 102 in year one and 101 in year two, the source continued.

Price talk on the second-lien term loan has not yet been announced.

Commitments are due on Dec. 9, the source added.

Proceeds will be used to help fund the acquisition of a concrete pipe manufacturing business from Rinker Materials, a subsidiary of Cemex SAB de CV, for about $500 million plus an additional $40 million purchase price contingent on future performance.

Closing is expected in the first quarter of 2017, subject to certain conditions, including approval from regulators.

Quikrete is an Atlanta-based manufacturer of packaged concrete and related products.

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