Published on 7/11/2019 in the Prospect News High Yield Daily.
New Issue: Masonite prices $500 million 8.5-year notes at par to yield 5 3/8%
By Paul A. Harris
Portland, Ore., July 11 – Masonite International Corp. priced a $500 million issue of 8.5-year senior notes (Ba3/BB+) at par to yield 5 3/8% in a quick-to-market Thursday trade, sources say.
The yield printed at the tight end of yield talk in the 5½% area. Initial guidance was in the mid-to-high 5% area.
The deal was at par 3/8 bid at the break, a trader said.
BofA Securities Inc. and Wells Fargo Securities LLC were the joint bookrunners.
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.
Issuer: | Masonite International Corp.
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Amount: | $500 million
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Maturity: | Feb. 1, 2028
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Securities: | Senior notes
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Bookrunners: | BofA Securities Inc. and Wells Fargo Securities LLC
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Co-managers: | HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, RBC Capital Markets Corp., Regions Securities Inc., TD Securities (USA) LLC
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Coupon: | 5 3/8%
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Price: | Par
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Yield: | 5 3/8%
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Spread: | 331 bps
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First call date: | Make-whole call at Treasuries plus 50 bps until Feb. 1, 2023, then callable at 102.688
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Equity clawback: | 40% at 105.375 until Feb. 1, 2023
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Trade date: | July 11
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Settlement date: | July 25
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Ratings: | Moody's: Ba3
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| S&P: BB+
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 5½% area
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Marketing: | Quick to market
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