Masonite driving by with $500 million 8.5-year deal, initial talk mid-to-high 5% area

By Paul A. Harris

Portland, Ore., July 11 – Masonite International Corp. plans to price a $500 million offering of 8.5-year senior notes (existing ratings Ba3/BB+) in a quick-to-market Thursday trade, following a late morning conference call with investors, sources say.

Initial talk has the Rule 144A for life deal coming to yield in the mid-to-high 5% area, according to a sellside source.

BofA Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners. HSBC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, Regions Securities Inc. and TD Securities (USA) LLC are the co-managers.

The notes become callable after 3.5 years at par plus 50% of the coupon, feature a 3.5-year 40% equity clawback at par plus the coupon and have a 101% poison put.

The Tampa-based designer, manufacturer and distributor of exterior doors plans to use the proceeds to redeem $500 million of its 5 5/8% notes due 2023.

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