By Paul A. Harris
Portland, Ore., April 15 – GMS Inc. priced an upsized $350 million issue of eight-year senior notes (B2/B) at par to yield 4 5/8% on Thursday, according to market sources.
The issue size increased from $300 million.
The yield printed 12.5 basis points tighter than the 4¾% to 5% yield talk. Initial guidance was in the mid-5% area.
Prior to upsizing, the GMS offering was playing to orders amounting to 10 times deal size, a trader said.
Barclays was the lead bookrunner. Joint bookrunners were Citizens Capital Markets Inc. and BofA Securities Inc.
The notes were sold via GYP Holdings III Corp.
The Tucker, Ga.-based provider of building supplies plans to use the proceeds, including the incremental proceeds resulting from the $50 million upsizing of the deal, along with cash on hand, to pay down its senior secured first-lien term loan.
| Issuer: | GYP Holdings III Corp.
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| Amount: | $350 million, increased from $300 million
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| Maturity: | May 1, 2029
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| Securities: | Senior notes
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| Lead bookrunner: | Barclays
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| Joint bookrunners: | Citizens Capital Markets Inc. and BofA Securities Inc.
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| Co-managers: | CIBC World Markets Corp., PNC Capital Markets LLC, RBC Capital Markets LLC, Truist Securities Inc. and U.S. Bancorp Investments Inc.
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| Coupon: | 4 5/8%
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| Price: | Par
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| Yield: | 4 5/8%
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| Spread: | 327 bps
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| Call protection: | Three years
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| Trade date: | April 15
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| Settlement date: | April 22
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4¾% to 5%
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| Marketing: | Roadshow
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