SRS Distribution completes $800M add-on term loan for acquisition; terms

Investors have received allocations of SRS Distribution Inc.'s $800 million non-fungible incremental first-lien term loan due June 2028 that priced tight to talk at a spread of 350 basis points over the secured overnight financing rate plus a credit spread adjustment of 10 basis points, with a 0.5% floor and an original issue discount of 99.5 via lead arrangers BofA Securities and Barclays, according to sources. The facility, which was upsized by $100 million during syndication, also has a 25-bps margin step-down at 3.6x net first-lien leverage. The term loan jumped to a 100.125/100.375 level following allocations. Proceeds from the deal will be used to help fund the company's acquisition of AquaCentral, with additional proceeds from the upsizing slated for general corporate purposes. Based in McKinney, Texas, SRS distributes building products in the U.S. Leonard Green & Partners and Berkshire Partners are the sponsors.

Terms: