GE Capital Markets and CIBC World Markets launched syndication of $144 million financing for United Central Industrial Supply to back its leveraged buyout by American Securities Capital Partners. The financing consists of a $20 million revolver and a $122 million term loan. Pricing is expected this week following ratings. Price talk for a rating of B2B is at the LIBOR plus 2 3/4%-LIBOR plus 3% range.
UCIS is located throughout the U.S. and Canada's mining regions and is one of the largest privately owned mining supply distributions in those two countries. In August 2004, The Riverside Company and UCIS' senior management team purchased the financial interests of Code Hennessey & Simmons' ownership in the company. Code Hennessey acquired the assets of United Central, renamed United Central Industrial Supply, in 1999. In June 2005, UCIS acquired the assets of A&C Equipment and Supply and in October 2005, acquired Triune. A call and email to a representative at American Securities Capital Partners were not returned, nor were calls to Allen Curtis, cfo at UCIS.