By Abigail W. Adams
Portland, Me., Oct. 30 – Smyrna Ready Mix Concrete, LLC priced an upsized $830 million, from $515 million, offering of eight-year senior secured notes (B1/B+) at par to yield 6% on Friday, according to a market source.
Pricing came at the wide end of talk for a yield of 5¾% to 6%. Initial talk was in the 5% area.
J.P. Morgan Securities LLC (lead left), BNP Paribas Securities Corp., BofA Securities Inc. and Goldman Sachs & Co. LLC were bookrunners for the Rule 144A and Regulation S offering.
The notes come with three years of call protection.
The notes were sold via SRM Escrow Issuer LLC.
The deal was initially announced as a $515 million offering, but proceeds from a withdrawn $315 million term loan were shifted to the notes.
The Nashville-based manufacturer and retailer of ready-mixed concrete plans to use the proceeds to fund several pending acquisitions.
| Issuer: | SRM Escrow Issuer LLC (Smyrna Ready Mix Concrete, LLC)
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| Amount: | $830 million
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| Maturity: | Nov. 1, 2028
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| Securities: | Senior notes
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| Left bookrunner: | J.P. Morgan Securities LLC
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| Joint bookrunners: | BNP Paribas Securities Corp., BofA Securities Inc., and Goldman Sachs & Co. LLC
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| Coupon: | 6%
|
| Price: | Par
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| Yield: | 6%
|
| Spread: | 530 bps
|
| Call protection: | Three years
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| Trade date: | Oct. 30
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| Settlement date: | Nov. 6
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| Ratings: | Moody's: B1
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | Yield of 5¾% to 6%
|
| Marketing: | Roadshow
|
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