Published on 6/24/2021 in the Prospect News High Yield Daily.
New Issue: US LBM sells $270 million tap of 6¼% notes due 2029 at par
By Paul A. Harris
Portland, Ore., June 24 – US LBM priced a $270 million add-on to the LBM Acquisition, LLC 6¼% senior notes due Jan. 15, 2029 (Caa2/CCC/CCC+) at par to yield 6.249% in a Thursday drive-by, according to market sources.
The issue price came on top of price talk. Initial guidance was 99 to par.
Barclays was the lead bookrunner.
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.
| Issuer: | LBM Acquisition, LLC
|
| Amount: | $270 million
|
| Maturity: | Jan. 15, 2029
|
| Security description: | Add-on to 6¼% senior notes due Jan. 15, 2029
|
| Left books: | Barclays
|
| Joint books: | Credit Suisse Securities (USA) LLC, BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets Corp., Truist, U.S. Bancorp Investments Inc.
|
| Coupon: | 6¼%
|
| Price: | Par
|
| Yield: | 6.249%
|
| Spread: | 492 bps
|
| First call: | Jan. 15, 2024 at 103.125
|
| Trade date: | June 24
|
| Settlement date: | July 1
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Fitch: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | Par
|
| Marketing: | Drive-by
|
| Original issue: | $500 million priced in December 2020
|
| Fungibility: | Add-on notes expected to become fungible with the original notes
|
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