Masonite International talks $250 million 10-year senior notes at 8 3/8% area, modifies covenant

By Paul A. Harris

Portland, Ore., April 7 - Masonite International Corp. talked its $250 million offering of 10-year senior notes (B3/B+) with a yield in the 8 3/8% area on Thursday, according to an informed source.

The books close at 11 a.m. ET on Friday, and the deal is set to price thereafter.

Merrill Lynch, Wells Fargo Securities, Deutsche Bank Securities Inc. and RBC Capital Markets are the joint bookrunners for the Rule 144A for life offering.

The notes become callable in four years at par plus 75% of the coupon. The notes also feature a 101% poison put.

Along with Thursday's price talk came a covenant change. The change involves the language of the "limitation on restricted payments" clause, in which "consolidated net debt ratio" has been changed to "consolidated total debt ratio."

The Mississauga, Ont.-based door manufacturer plans to use the proceeds from the notes sale for general corporate purposes, which may include funding future acquisitions and a return of capital to shareholders.

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