Kodiak cuts spread on $560 million term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 26 – Kodiak Building Partners reduced pricing on its $560 million seven-year term loan B (B2/B-) to Libor plus 325 basis points from revised talk of Libor plus 350 bps and initial talk of Libor plus 375 bps, according to a market source.

The term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months

Earlier in syndication, the term loan was upsized from $540 million.

The company’s $760 million of credit facilities also include a $200 million five-year ABL revolver.

RBC Capital Markets is the left lead on the deal.

Commitments continued to be due at noon ET on Friday, the source added.

Proceeds will be used to refinance the company’s capital structure and pay a shareholder dividend, which was increased to $200 million from $175 million as a result of the recent term loan upsizing.

Kodiak Building is a Highlands Ranch, Colo.-based building products distribution platform and provider of fabrication and assembly services.

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