UBS and Wachovia Securities are leading a $220 million financing package backing the buyout of kitchen and bathroom cabinet supplier Norcraft Companies by private equity firms Trimaran Capital Partners and Saunders Karp & Megrue, according to a banker familiar with the deal. The transaction value is approximately $315 million, with the buyout firms and Mark Buller, expected to be Norcraft's new ceo, said to be contributing $135 million of equity for the deal.
The debt package is divided between a $70 million credit and a $150 million senior subordinated note component. The credit, which launched for syndication last Thursday, is broken down between a $45 million, six-year "B" loan and a $25 million, five-year revolver. Price talk is set at LIBOR plus 31Ž2% for the institutional piece, while the revolver is talked in the LIBOR plus 3% context, the banker added.
The lead arrangers were set to go out to a small selective group of investors, the banker noted. UBS holds the sole bookrunner and co-arranger titles on the bank and bond deals, while Wachovia has been pinned as syndication agent and co-arranger. Leverage is at 4.5 times and the revolver is expected to remain undrawn, the banker said, adding that total capitalization for Eagan, Minn.-based Norcraft is $330 million. Norcraft is being sold by private equity firms Pfingsten Partners and Goense, Bounds & Partners. A UBS official declined to comment, while a Wachovia banker did not return calls. Calls to officials at Trimaran and Saunders Karp were not returned.