New Issue: Building Materials sells upsized $450 million 6 7/8% eight-year notes to yield 7 1/8%

By Paul A. Harris

St. Louis, Aug. 9 - Building Materials Corp. of America priced an upsized $450 million issue of 6 7/8% eight-year senior notes (B1/BB+/) at 98.493 to yield 7 1/8% on Monday, according to market sources.

The yield printed on top of the price talk.

Deutsche Bank Securities Inc., Citigroup Global Markets Inc. and Bank of America Merrill Lynch were the joint bookrunners for the quick-to-market deal, which was upsized from $350 million.

The Wayne, N.J.-based roofing company will use the proceeds to repay its second-lien term loan due in 2014.

Issuer:	Building Materials Corp. of America
Face amount:	$450 million, increased from $350 million
Proceeds:	$443,219,000 (approximate)
Maturity:	Aug. 15, 2018
Securities:	Senior notes
Bookrunners:	Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Bank of America Merrill Lynch (joint)
Coupon:	6 7/8%
Price:	98.493
Yield:	7 1/8%
Spread:	477 bps
Call protection:	Four years
Trade date:	Aug. 9
Settlement date:	Aug. 12
Ratings:	Moody's: B1
	Standard & Poor's: BB+
Distribution:	Rule 144A for life
Price talk:	7 1/8%
Marketing:	Quick to market

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