CPG International Inc. (AZEK:US), a manufacturer of synthetic building products, is seeking $465 million in loans to finance its acquisition of TimberTech Ltd., according to a person with knowledge of the transaction.
Credit Suisse Group AG is arranging the debt for the Scranton, Pennsylvania-based company, said the person, who asked not to be identified because the information is private.
The financing will consist of a seven-year, $355 million term loan and a $110 million asset-based revolving line of credit maturing in five years, said the person.
Term-loan lenders are being offered one-year soft-call protection of 101 cents, meaning the company would have to pay one cent more than face value to refinance the loan during the first year, according to the person.
The bank will hold a lender meeting Sept. 6 at 10 a.m. in New York, the person said.
CPG is acquiring TimberTech, a subsidiary of the Crane Group, for an undisclosed amount, according to an Aug. 27 statement distributed by PR Newswire. The acquisition is expected to be completed in late September, according to the statement.
Maureen Murray, a spokeswoman for CPG, didn’t immediately respond to an e-mail seeking comment.
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