US LBM intends to price $400 million six-year HoldCo PIK toggle notes on Thursday

By Paul A. Harris

Portland, Ore., Jan. 20 – US LBM plans to sell $400 million of BCPE Ulysses Intermediate, Inc. six-year HoldCo PIK toggle notes on Thursday, according to a market source.

The deal was set to kick off on a late Wednesday morning conference call with investors.

The notes are expected to price at a discount featuring a to-be-determined cash coupon that will step up by 75 basis points for PIK payments.

Barclays, BofA Securities Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets Corp., Truist Securities Inc., Deutsche Bank Securities Inc. and U.S. Bancorp Investments Inc. are the joint bookrunners.

The notes come with two years of call protection. They feature a 40% equity clawback at par plus the coupon during year one. In years two and three 100% of the issue is redeemable at 102 and 101, respectively, with proceeds from one or more equity offerings.

The Buffalo Grove, Ill.-based distributor of specialty building materials plans to use the proceeds to return capital to its shareholders.

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