US LBM talks $400 million HoldCo PIK toggle notes at a discount to yield 8%-8¼%

By Paul A. Harris

Portland, Ore., Jan. 21 – US LBM talked $400 million of BCPE Ulysses Intermediate, Inc. six-year HoldCo PIK toggle notes with an all-in yield of 8% to 8¼%, including up to 1 point of original issue discount, according to market sources.

Official talk comes tight to early guidance of 8% to 8½%.

Books close at 1 p.m. ET on Thursday.

The notes come with a 75 basis points step-up from the cash coupon 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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