Lafarge Roofing completes second flex

Lafarge Roofing, backed by PAI Partners, has completed the second reverse flex request on its oversubscribed €2.38bn LBO financing after almost no investors dropped out after the first flex request.

Bookrunners across the whole facility are BNP Paribas and JPMorgan, while Bank of America Securities is bookrunner on the second lien and PIK pieces and an MLA across the whole package. Mizuho Corporate Bank and SG are MLAs on the senior facilities.

The initial flex request was for the €100m PIK loan to be removed and €25m added to the second lien, increasing that tranche to €325m, and €75m split equally between B&C tranches, increasing each of them to €622.5m. Pricing was also flexed down by 25bp on the A tranche and the revolver, by 12.5bp on the B and C tranches and by 62.5bp on the second lien.

This new flex request is for pricing on the B and C tranches to be cut by a further 12.5bp and for banks to re-bid the second lien pricing.

If the flex is approved, the new facility will be made up of a €125m seven-year revolver at 200bp over Euribor, a €175m seven-year capex facility at 200bp, a €200m seven-year term loan A at 200bp, a €622.5m eight-year term loan B at 212.5bp over Euribor, a €622.5m nine year term loan C with a 237.5bp margin and a €325m 9-1/2 year second lien, pricing of which will be determined.

Nachum Kaplan