UBS and Citigroup last week launched syndication of a $375 million refinancing for window manufacturer Atrium Companies. "The reality is it's a good time to do [the refinancing], more importantly what we're trying to do is give the company more liquidity and free cash flow," said Tom Wolf, managing director with equity sponsor Kenner & Co.
The company is calling all of its outstanding 10 1/2% senior subordinated notes and the only debt that will remain at the operating company level is the senior secured credit facility. There will be some notes put in at the holding company level, making it an all-private transaction. "It gives us the most flexibility with the company. It allows us to do what we want to do strategically as it relates to growing the business. It positions us well without having any public bonds outstanding," Wolf noted.
Kenner purchased the company last year with UBS Capital Americas, Merrill Lynch Global Private Equity and members of Atrium management (LMW, 12/22). Since the buyout, Atrium has completed four acquisitions. "The company is doing very well. Sales have grown significantly and we continue to pursue strategic growth initiatives," Wolf said.
The credit comprises a five-year, $50 million revolver at LIBOR plus 2 1/4% and a seven-year, $325 million term loan at LIBOR plus 2 1/2%. CIBC World Markets and UBS led the previous credit. Both UBS and Citi have a very strong presence in the building products sector, Wolf noted. Patrick Coffee, Atrium's treasurer, declined comment.