BlueLinx starts roadshow for $300 million eight-year secured notes; initial talk high 5%-6% area

By Paul A. Harris

Portland, Ore., Oct. 12 – BlueLinx Holdings Inc. began a roadshow on Monday for a $300 million offering of eight-year senior secured notes (expected ratings B1/B+), according to market sources.

Initial guidance has the notes coming to yield in the high 5% to 6% area, a trader said.

The deal was set to kick off on a Tuesday conference call with investors.

The roadshow runs through Friday.

BofA Securities Inc., Stifel, Nicolaus & Co. Inc. and Wells Fargo Securities LLC are the joint bookrunners.

Benchmark, Craig-Hallum Capital Group LLC and D.A. Davidson & Co. are the co-managers.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback at par plus the full coupon and a 101% poison put.

The Atlanta-based wholesale distributor of building products plans to use the proceeds to repay debt under its revolver.

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