By Paul A. Harris
Portland, Ore., Aug. 9 – Builders FirstSource, Inc. priced a $750 million issue of eight-year senior secured notes (B3/B+) at par to yield 5 5/8% on Tuesday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 5¾% area.
Initial guidance was in the high 5% to 6% yield context, an investor said.
Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.
The notes become callable after Sept. 1, 2019 at 104.219. A special call provision allows issuer to redeem 10% of the notes annually at 103 during the non-call period.
The Dallas-based building materials manufacturer and supplier plans to use the proceeds to refinance its senior secured notes due 2021 and a portion of its term loan B.
| Issuer: | Builders FirstSource, Inc.
|
| Amount: | $750 million
|
| Maturity: | Sept. 1, 2024
|
| Securities: | Senior secured notes
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc.
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| Spread: | 418 bps
|
| First call: | Sept. 1, 2019 at 104.219
|
| Equity clawback: | 40% at 105.625 until Sept. 1, 2019
|
| Trade date: | Aug. 9
|
| Settlement date: | Aug. 22
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
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