SRS Distribution to start roadshow on Monday for $380 million eight-year senior notes

By Paul A. Harris

Portland, Ore., May 11 – SRS Distribution, Inc. plans to start a roadshow on Monday in Boston for a $380 million offering of eight-year senior notes (Caa2/CCC+), according to market sources.

Initial whisper has the deal coming to yield 7¾% to 8%, a trader said.

The Rule 144A and Regulation S for life deal travels to New York on Tuesday, to Los Angeles on Wednesday and to San Francisco on Thursday and is set to price thereafter.

Barclays is the lead left bookrunner. BofA Merrill Lynch, UBS Investment Bank, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co., Nomura and RBC Capital Markets LLC are the joint bookrunners.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback and a 101% poison put.

Proceeds will be used to fund the buyout of the McKinney, Texas-based roofing products distributor by Leonard Green & Partners LP from Berkshire Partners.

Debt financing for the buyout also includes $1.7 billion of credit facilities.

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