Stile Acquisition to price $825 million two-tranche bond offering

By Paul A. Harris

St. Louis, Feb. 11 - Stile Acquisition Corp., in conjunction with Masonite International Corp., is expected to sell $825 million of high-yield bonds (B-) in two tranches this month, according to market sources.

Deutsche Bank Securities, UBS Investment Bank and Bank of Nova Scotia have committed to provide debt financing, which also will include a $1.525 billion credit facility.

The bond portion of the financing will be comprised of a $300 million tranche of eight-year senior unsecured floating-rate notes and a $525 million tranche of 10-year senior subordinated notes.

The $1.525 billion credit facility will be comprised of a $1.175 billion eight-year senior secured term loan and a $350 million equivalent six-year multi-currency revolving credit facility.

Proceeds will be used to help fund Kohlberg Kravis Roberts & Co.'s acquisition of Masonite in an all cash transaction, under which Masonite's shareholders will receive C$40.20 per share. The total value of the transaction is C$3.1 billion.

Masonite International is a Mississauga, Ont.-based building products company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.