ACProducts launches $400 million term loan at Libor plus 550 bps

By Sara Rosenberg

New York, Jan. 31 – ACProducts Inc. launched on Thursday its $400 million five-year first-lien term loan (B3/B+) with price talk of Libor plus 550 basis points with a 0% Libor floor and an original issue discount of 97 to 98, according to a market source.

The first-lien term loan has 101 soft call protection for one year, and amortization of 2.5% per annum for the first three years and 5% per annum onwards, the source said.

The company’s $578 million of credit facilities also include a $75 million undrawn 4.75-year asset-based revolving credit facility and a $103 million 5.5-year privately placed second-lien term loan (Caa2/CCC+).

Barclays is the lead on the deal.

Commitments for the first-lien term loan are due at noon ET on Feb. 14, the source added.

Proceeds will be used to fund the acquisition of Elkay Wood Products Co. and to refinance existing debt.

Closing is expected by the end of this quarter, subject to customary conditions.

American Industrial Partners is the sponsor.

ACProducts is a Colony, Texas-based manufacturer and distributor of cabinets. Elkay is an Oak Brook, Ill.-based manufacturer of kitchen and bath cabinetry.

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