By Paul A. Harris
Portland, Ore., July 27 – Summit Materials, LLC and Summit Materials Finance Corp. priced a $700 million issue of 8.5-year senior notes (B2/BB) at par to yield 5¼% in a Monday drive-by, according to market sources.
The yield printed at the tight end of the 5¼% to 5½% yield talk and well inside of initial talk in the high 5% area.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC and Capital One Securities Inc.
The Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt plans to use the proceeds to redeem all $650 million of its 6 1/8% senior notes due 2023, with any remaining proceeds to be used for general corporate purposes, including acquisitions.
| Issuers: | Summit Materials, LLC and Summit Materials Finance Corp.
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| Amount: | $700 million
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| Maturity: | Jan. 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | BofA Securities Inc.
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| Joint bookrunners: | Barclays, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Jefferies LLC and Capital One Securities Inc.
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| Coupon: | 5¼%
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| Price: | Par
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| Yield: | 5¼%
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| Spread: | 475 bps
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| Call protection: | Three years
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| Trade date: | July 27
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| Settlement date: | Aug. 11
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| Ratings: | Moody's: B2
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| S&P: BB
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5¼% to 5½%
|
| Marketing: | Drive-by
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