Bloomberg News

Interline Gets $928 Million in Loans for Goldman Sachs, P2 LBO

May 29, 2012

Interline Brands Inc. (IBI:US), a distributor of janitorial, plumbing and lighting products, obtained $928 million in loans to back its buyout by GS Capital Partners LP and P2 Capital Partners LLC.

Goldman Sachs Group Inc. and Bank of America Corp. are providing the financing, which includes a $250 million asset- based revolving line of credit, a $303 million unsecured operating-company bridge loan and a $375 unsecured holding- company bridge loan, Interline said today in a regulatory filing.

GS Capital and P2 Capital are acquiring the Jacksonville, Florida-based company for $1.1 billion including debt, according to the filing. The offer of $25.50 a share is 42 percent higher than Interline’s closing price on May 25. The transaction is expected to close by the end of the third quarter of 2012.

GS Capital, Goldman Sachs Group’s private-equity unit, is providing equity in the amount of $369.3 million, while P2 Capital is contributing $6.4 million as well as 927,386 shares of common stock, according to the filing.

Leva Cela, a spokesman for Interline Brands, Andrea Raphael, a spokeswoman for GS Capital, and Claus Moller, a managing partner at P2 Capital, didn’t immediately respond to an e-mail seeking comment.

In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan it can’t.

To contact the reporter on this story: Michael Amato in New York at Mamato3@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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