By Paul A. Harris
Portland, Ore., Jan. 21 – US LBM priced $400 million issue of BCPE Ulysses Intermediate, Inc. HoldCo PIK toggle notes due April 1, 2027 (Caa3/CCC+/CCC-) at 99.364 to yield 7 7/8% on Thursday, according to market sources.
The notes pay a 7¾% cash coupon, which steps up by 75 basis points to 8½% for PIK payments.
The yield printed 12.5 bps tighter than the 8% to 8¼% yield talk (initial talk was 8% to 8½%). The issue price came in line with price talk that specified up to 1 point of original issue discount.
Barclays was at the left of a syndicate of bookrunners that also included 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.
The Buffalo Grove, Ill.-based distributor of specialty building materials plans to use the proceeds to return capital to its shareholders.
| Issuer: | BCPE Ulysses Intermediate, Inc.
|
| Amount: | $400 million
|
| Maturity: | April 1, 2027
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | 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.
|
| Cash coupon: | 7¾%
|
| PIK coupon: | 8½%
|
| Price: | 99.364
|
| Yield: | 7 7/8%
|
| Spread: | 723 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until April 1, 2023, then callable at 102
|
| Trade date: | Jan. 21
|
| Settlement date: | Jan. 28
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
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| Fitch: CCC-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% to 8¼% all-in yield including up to 1 point OID
|
| Marketing: | Roadshow
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