UBS and Credit Suisse First Boston launched syndication last Tuesday of a $260 million amended and restated credit for vinyl siding and vinyl window product maker Associated Materials, backing the company's acquisition of Gentek Holdings for approximately $118 million in cash. The deal consists of a $70 million revolver and a $190 million "B" piece. The "B" loan is priced at LIBOR plus 3%, which is 50 basis points tighter than the company's existing loan spread, according to a banker who noted that commitments rolled into the deal both before and after the bank meeting.
The revolver is priced at LIBOR plus 3%. The banker said the lenders to the existing revolver will be paid 25 basis points to stay in the deal and approve the amendment for the increased revolver. The existing revolver is $40 million. Pro forma senior leverage for the acquisition will be 2.3 times, while total leverage will be 4.2 times. The banker did not specify commitment levels. CIBC World Markets is a documentation agent on the deal.
Associated Materials will also be repaying Gentek's indebtedness along with the debt of Gentek's subsidiaries in the transaction. UBS and CSFB lead Associated Materials' existing credit for $165 million, which includes a $125 million term loan that is being refinanced in the new credit. This deal helped back the leveraged buyout of Associated Materials by investment firm Harvest Partners for $436 million in April of last year (LMW, 3/02). UBS and CSFB officials declined to comment. Keith LaVanway, cfo of Associated Materials, did not return calls.