Masonite to launch approximately $1.5 billion credit facility, $825 million bonds in January

By Sara Rosenberg

New York, Dec. 23 - Masonite International Corp. is expecting to launch a roughly $1.5 billion credit facility and a roughly $825 million high-yield bond offering some time in January, a market source told Prospect News Thursday. The Bank of Nova Scotia will provide the full underwriting of the debt transactions.

The Mississauga, Ont.-based building products company's credit facility is contemplated to consist of a revolver and a term loan, with the term loan expected to be sized in excess of $1 billion, the source said.

Both the loan and the bonds also are expected to be denominated in U.S. currency, not Canadian dollars.

However, the credit facility size and structure and the bond offering size are still somewhat fluid since the deals are still a way off from launching, the source explained.

Proceeds from the debt transactions will be used to help fund Kohlberg Kravis Roberts & Co.'s acquisition of Masonite in an all-cash transaction under which Masonite's shareholders will receive C$40.20 per share. The total value of the transaction is about C$3.1 billion.

KKR will be providing some equity to fund the acquisition as well.

Closing of the LBO, which is expected to occur in late February, is subject to customary conditions, including regulatory, shareholder and court approvals.

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