US LBM driving by with $270 million tap of 6¼% notes due 2029, initial talk 99 to par

By Paul A. Harris

Portland, Ore., June 24 – US LBM plans to price a $270 million add-on to the LBM Acquisition, LLC 6¼% senior notes due Jan. 15, 2029 (Caa2/CCC/CCC+) in a Thursday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life deal pricing at 99 to par, a trader said.

Barclays is the lead bookrunner. Credit Suisse Securities (USA) LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets Corp., Truist and U.S. Bancorp Investments Inc. are the joint bookrunners.

The notes become callable on Jan. 15, 2024 at 103.125.

The Buffalo Grove, Ill.-based distributor of specialty building materials plans to use the proceeds plus incremental term loans to fund the acquisitions of American Construction Source, J.P. Hart Lumber and other entities specified in its letter of intent.

The original $500 million issue priced in December 2020.

The add-on notes are expected to become fungible with the original notes.

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