SRS Distribution driving by with $700 million eight-year notes; initial talk low-to-mid 6% area

By Paul A. Harris

Portland, Ore., Nov. 8 – SRS Distribution Inc. plans to price a $700 million offering of eight-year senior notes (existing ratings Caa2/CCC) in a Monday drive-by following a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low-to-mid 6% area, a trader said.

Barclays is the left bookrunner. BofA Securities Inc., UBS Securities LLC, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Nomura Securities International Inc., RBC Capital Markets LLC, Regions Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.

The Rule 144A and Regulation S for life notes come with three years of call protection.

The McKinney, Tex.-based roofing supplies business plans to use the proceeds to fund recent and pending acquisitions, to repay debt under its ABL and to fund cash to its balance sheet.

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