By Paul A. Harris
Portland, Ore., Oct. 11 – Beacon Roofing Supply Inc. and Beacon Supply Escrow Corp. priced a $1.3 billion issue of eight-year senior notes (B3/B+) at par to yield 4 7/8% on Wednesday, according to a syndicate source.
The yield printed at the tight end of yield talk in the 5% area.
Wells Fargo Securities LLC was the left bookrunner. Citigroup Global Markets Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. were the joint bookrunners.
The Herndon, Va.-based distributor of residential and commercial roofing materials and complementary building products plans to use the proceeds to help fund its acquisition of East Rutherford, N.J.-based building products distributor Allied Building Products Corp. and to refinance existing debt.
| Issuers: | Beacon Roofing Supply, Inc. and Beacon Supply Escrow Corp.
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| Amount: | $1.3 billion
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| Maturity: | Nov. 1, 2025
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| Securities: | Senior notes
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| Left bookrunner: | Wells Fargo Securities LLC
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| Joint bookrunners: | Citigroup Global Markets Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc.
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| Coupon: | 4 7/8%
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| Price: | Par
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| Yield: | 4 7/8%
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| Spread: | 262 bps
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| Call protection: | Three years
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| Trade date: | Oct. 11
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| Settlement date: | Oct. 25
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| Ratings: | Moody's: B3
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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: | 5% area
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| Marketing: | Investor call
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