Cornerstone secured notes expected this week to help address $1.68 billion bridge

By Paul A. Harris

Portland, Ore., July 11 – Cornerstone Building Brands Inc. is expected to show up with an offering of senior secured notes this week, according to market sources.

The notes would represent at least a portion of the refinancing of a $1.675 bridge loan put in place in early March to support the buyout of the company by Clayton, Dubilier & Rice (CD&R).

The debt commitment is from Deutsche Bank Securities Inc., UBS Investment Bank, Barclays, BNP Paribas, RBC Capital Markets, Societe Generale, Goldman Sachs, Natixis, Jefferies, Apollo, Blackstone Credit, and U.S. Bank.

Cornerstone is also expected to bring a secured term loan.

Other funds for the transaction will come from equity.

As reported, the buyout has an enterprise value of about $5.8 billion, including the assumption of debt.

Closing is expected in the second or third quarter of 2022

CD&R is the beneficial owner of around 49% of the company’s outstanding shares of common stock.

Cornerstone is a Cary, N.C.-based manufacturer of exterior building products.

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