Builders FirstSource talks $350 million eight-year secured notes to yield in 7¾% area

By Paul A. Harris

Portland, Ore., May 15 - Builders FirstSource, Inc. talked its $350 million offering of eight-year senior secured notes (Caa2/B-) with a yield in the 7¾% area on Wednesday, according to a syndicate source.

Books close at 11 a.m. ET on Thursday, and the deal is set to price thereafter.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable in three years at par plus 75% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.

The notes also feature a three-year 35% equity clawback and a 101% poison put.

The Dallas-based manufacturer and supplier of building products plans to use the proceeds to refinance debt.

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