ACProducts ups term loan to $1.1 billion, sets issue price at 102

By Sara Rosenberg

New York, Feb. 18 – ACProducts Inc. upsized its term loan to $1.1 billion from $1.075 billion and tightened the issue price to 102 from talk in the range of 99 to 99.5, according to a market source.

Pricing on the term loan is Libor plus 650 basis points with a 1% Libor floor.

The term loan has hard call protection of 103 in year one, 102 in year two and 101 in year three.

KKR Capital Markets is the lead on the deal.

Proceeds will be used to help fund the acquisition of Masco Cabinetry from Masco Corp. for $1 billion, consisting of $850 million in cash at closing and preferred stock issued by a holding company of the buyer with a liquidation preference of $150 million.

Closing is expected this quarter, subject to customary conditions and regulatory review.

ACProducts, owned by American Industrial Partners, is a The Colony, Tex.-based manufacturer of cabinetry products.

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