Core & Main to launch $225 million add-on term loan B on Tuesday

By Sara Rosenberg

New York, May 13 – Core & Main LP is set to hold a lender call at 2 p.m. ET on Tuesday to launch a fungible $225 million add-on term loan B (B2) due August 2024, according to a market source.

J.P. Morgan Securities LLC is the lead bank on the deal.

Pricing on the add-on term loan is Libor plus 300 basis points with a 25 bps step-down when total net leverage is less than 5.75 times and a 1% Libor floor, in line with pricing on the company’s existing $1.06 billion term loan B.

Original issue discount talk on the add-on term loan B is 99.25 to 99.5, the source said.

Proceeds will be used to fund the acquisition of Long Island Pipe Supply Inc., a provider of fire protection products and fabrication services.

Commitments are due at 5 p.m. ET on May 22, the source added.

Closing on the acquisition is subject to regulatory approval and other customary conditions.

Core & Main, formerly known as HD Supply Waterworks, is a St. Louis-based distributor of water, sewer and fire protection products.

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