After several changes, UBS finalized the structure for JLL Partners' dividend recapitalization of Builders FirstSource. The first-lien term loan was increased by $30 million to $230 million, while the spread was increased to LIBOR plus 31/4% from LIBOR plus 3%. Leverage for the first lien will increase from 2.1 times to 3.2 times. The second-lien term loan was decreased by $30 million to $85 million and the coupon was increased to LIBOR plus 81/2%. There is also a 2% LIBOR floor on the second-lien term loan and an upfront fee of 1%.
Despite the sweetened terms, one buysider was still not convinced by the deal. "JLL is taking out too much of a dividend." The $90 million revolver is unchanged at LIBOR plus 23/4%. Ramsey Frank, senior managing director with JLL, did not return calls. It could not be determined by press time if the deal was subscribed and UBS officials declined comment.