Kenner & Co. strolled through the market with its $230 million credit backing the acquisition of window maker Atrium Companies. "We had orders for over a billion dollars within a day," said Jeff Kenner, president of Kenner & Co., who noted the deal was five times oversubscribed. The company is paying $700 million to acquire Atrium from GE Asset Management and private equity firm Ardshiel.
The facility is led by CIBC World Markets and comprises a $50 million revolver and a $180 million "B" loan. The term debt is priced at LIBOR plus 23/4%. The revolver was undrawn at the close of the transaction. CIBC is a part of Kenner's partnership and also led Kenner's previous acquisition of Therma-Tru Corp., a manufacturer of exterior entry doors, Kenner noted. "We've known them for many, many years," he added. In addition to the bank debt, the acquisition was funded through $50 million of 101/2% senior subordinated notes and new equity exceeding $260 million. UBS led the bond financing. UBS is probably the leading bank in the area of products for the home, Kenner stated.
Kenner & Co. began looking at Atrium last summer after meeting Jeff Hull, the company's ceo. "Atrium is a very strong company," Kenner said. "[It is] well positioned for growth in the home products field--the area we concentrate in." Atrium is the largest manufacturer of windows, in terms of units," he said. "In six years, management has taken [Atrium] from a little over $100 million in sales to well over $700 million in sales." The investor group buying Atrium with Kenner & Co. includes UBS Capital Americas, Merrill Lynch Global Private Equity and members of Atrium management.