Beacon Roofing to price $350 million eight-year notes on Thursday; initial talk low-to-mid 4% area

By Paul A. Harris

Portland, Ore., April 19 – Beacon Roofing Supply, Inc. set an investor conference call at 11 a.m. ET on Thursday for its $350 million offering of eight-year senior notes (B2/B-), according to a syndicate source.

The Rule 144A and Regulation S deal is set to price later on Thursday.

BofA Securities Inc. is the left bookrunner. Citigroup Global Markets Inc. and Wells Fargo Securities LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback, and a 101% poison put.

The Herndon, Va.-based roofing products supplier plans to use the proceeds plus cash on hand and borrowings under its new credit facilities to pay off all $1.3 billion of its 4 7/8% senior notes due 2025 and its existing term loan.

Initial guidance has the new eight-year notes coming to yield in the low-to-mid 4% area, a bond trader said.

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