By Paul A. Harris
Portland, Ore., July 17 – Beacon Roofing Supply Inc. priced an upsized $700 million issue of seven-year senior secured notes (Ba3/BB) at par to yield 6½% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 6½% to 6¾% yield talk. Initial talk was in the 6¾% to 7% area.
The deal was heard to have played to $3 billion of orders, a sellside source said.
J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist Securities Inc. were the bookrunners.
The Herndon, Va.-based building supplies company plans to use the proceeds to repurchase all 400,000 outstanding shares of its series A cumulative convertible participating preferred stock held by an entity affiliated with the Clayton Dubilier & Rice, LLC for $804.5 million plus unpaid dividends.
| Issuer: | Beacon Roofing Supply Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Issue: | Senior secured notes
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| Maturity: | Aug. 1, 2030
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| Bookrunners: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, BofA Securities Inc., Deutsche Bank Securities Inc. and Truist Securities Inc.
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Spread: | 259 bps
|
| Call protection: | Three years
|
| Trade date: | July 17
|
| Settlement date: | July 31
|
| Ratings: | Moody’s: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
|
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