Summit Materials talks $800 million seven-year notes in 7½% area; pricing expected Thursday

By Paul A. Harris

Portland, Ore., Nov. 29 – Summit Materials, LLC and Summit Materials Finance Corp. talked their $800 million offering of senior notes due January 2031 (Ba3/BB) to yield in the 7½% area, according to market sources.

Official talk comes inside of initial guidance in the high-7% to 8% area, a bond trader said.

Books were scheduled to close late Wednesday afternoon, and the deal is expected to price Thursday.

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

Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Barclays and Capital One Securities Inc. are the joint bookrunners. PNC Capital Markets LLC is the co-manager.

The Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt plans to use the proceeds plus a $500 million term loan to fund the cash consideration of its acquisition of Alpharetta, Ga.-based cement producer Argos USA.

The acquisition, valued at approximately $3.2 billion, is expected to close in the first half of 2024.

The notes are subject to a mandatory redemption at par plus accrued interest if the acquisition is not consummated by Nov. 25, 2024.

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