Interline Brands hit the bank market last Thursday for a new $355 million credit. The financing consists of a seven-year, $100 million term loan; a seven-year, $130 million delayed-draw term loan and a six-year, $100 million revolver. Pricing is LIBOR plus 1 3/4% across all tranches. JPMorgan and Lehman Brothers lead the deal.
The delayed-draw term loan will be used solely to fund the acquisition of most of the assets of American Sanitary, according to a filing with the Securities and Exchange Commission. The company also intends to offer $175 million of fixed-rate senior subordinated notes. Proceeds from the notes offering along with borrowings under the credit facility will be used to repay an existing facility and to purchase the company's existing 11 1/2% notes due 2011.
Headquartered in Jacksonville, Fla., Interline provides maintenance and repair products to about 160,000 professional contractors across North and Central America. American Sanitary distributes janitorial and sanitary supplies. It offers over 40,000 products to more than 50,000 customers in 40 states. For the 12 months ending March 31, the operations of American Sanitary that are being acquired generated sales of about $245.2 million and EBITDA of about $16.9 million. A call to Thomas Tossavainen, Interline cfo, was not returned by press time. An official at American Sanitary was traveling and could not be reached for comment.