UBS and Wachovia Securities are set to lead a $220 million financing package backing the buyout of cabinet supplier Norcraft Companies by private equity firms Trimaran Capital Partners and Saunders Karp & Megrue, according to a banker familiar with the deal. The purchase price for the deal is $220 million, but the banker could not provide the size of the equity commitments in the deal.
The debt package is divided between a $70 million credit and a $150 million senior note component. The credit, which will launch for syndication on 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 3 1/2% for the institutional piece, while the revolver is being talked about in the LIBOR plus 3% context, the banker added.
The lead arrangers will 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 is billed as syndication agent and co-arranger. Leverage is at 4 1/2 times and the revolver is expected to remain undrawn, the banker said. Total capitalization for St. Paul, Minn.-based Norcraft is $330 million. A UBS official declined to comment, while a Wachovia banker did not return calls. Calls for officials at Trimaran and Saunders Karp were not returned by press time.