Cabinetworks ups spread on $1.4 billion loan to Libor plus 425 bps

By Sara Rosenberg

New York, May 6 – Cabinetworks Group increased pricing on its $1.4 billion seven-year term loan B (B1/B-) to Libor plus 425 basis points from talk in the range of Libor plus 375 bps to 400 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 99, the wide end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.5% Libor floor.

BofA Securities Inc., Citigroup Global Markets Inc., Barclays, Deutsche Bank Securities Inc., Goldman Sachs Bank USA, KKR Capital Markets, BMO Capital Markets, Jefferies LLC and RBC Capital Markets are the leads on the deal.

Recommitments were scheduled to be due at 3:30 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Platinum Equity from American Industrial Partners, GIC and other equity holders.

Other funds for the transaction will come from $550 million of senior notes and equity.

Closing is expected this quarter, subject to customary conditions.

Cabinetworks is an Ann Arbor, Mich.-based manufacturer and distributor of kitchen and bath cabinets.

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