TAMKO Building Products lines up $250M add-on term loan for dividend

TAMKO Building Products LLC is in the market with a proposed $250 million add-on term loan B that will be used to fund a shareholder distribution, according to sources. A lender call is scheduled for 11 a.m. ET on March 15, and commitments to the J.P. Morgan-led deal are due at 5 p.m. ET on March 18.

The add-on is offered at an issue price of 99 and will be fungible with the existing $593 million covenant-lite TLB due May 2026 that is priced at L+300, with a 0% Libor floor. At talk, the yield to maturity is 3.44%. Lenders are offered six months of 101 soft call protection.

Agencies affirmed facility ratings at BB-/B2, with a 4 recovery rating from S&P Global Ratings, and corporate ratings at BB-/B1. Both also revised their outlook to stable, from negative.

The issuer placed the existing TLB in May 2019, and pricing came at L+325 with a step-down to L+300 at 3.5x net first-lien leverage.

Privately held TAMKO manufactures building products in the U.S.