UBS Warburg andCredit Suisse First Boston will launch a bank meeting on April 2 for Harvest/ AMI Holdings, a newly formed company from New York-based leveraged buyout shop Harvest Partners for the acquisition of Associated Materials. The $165 million credit will be split between a $40 million five-year revolver and a $125 million seven-year "B" term loan. Spreads and a commitment fee have not been decided yet, said a banker.
The total purchase price of the acquisition is $436 million, which includes $75 million of outstanding subordinated notes that will be refinanced (LMW, 3/25). The two banks in addition to CIBC World Markets will play a role in a bond offering, according to the banker. The equity component and the size of the bond offering could not be determined. Associate Materials is a distributor and manufacturer of vinyl sliding. The company has historically strong growth and the bank debt is expected to carry a B+/B1 rating. The purchase price works out at a 7.1 times EBITDA.