UBS Warburg and Credit Suisse First Boston have landed lead roles on an upcoming bank deal for Harvest/ AMI Holdings, a newly formed company from New York-based leveraged buyout shop Harvest Partners, for the acquisition of Associated Materials. The total purchase price is $436 million, which includes $75 million of outstanding subordinated notes that will be refinanced, said a banker familiar with the transaction. The bank deal should be in the region of $165 million and bonds will accompany shortly afterwards, he added. A date for launching the bank portion is likely to be in the next few weeks. The two banks in addition to CIBC World Markets will play a role in the bonds, he said. The equity component and size of the bond offering could not be determined.
Associated Materials is a distributor and manufacturer of vinyl sliding. According to a banker, the company has historically strong growth and bank debt is expected to carry a B+/B1 rating. The purchase price works out at a 7.1 times EBITDA, according to one banker familiar with the acquisition. Jeff Wilhoit, a spokesman for Associated, did not return calls. Officials at the private equity firm could not be reached for comment.