Summit Materials upsizes to $260 million, talks tap of 10½% notes due 2020 at 108.25-108.75

By Paul A. Harris

Portland, Ore., Jan. 9 - Summit Materials LLC and Summit Finance Corp. upsized the add-on to their 10½% senior notes due Jan. 31, 2020 (expected ratings Caa1/B-) by $50 million and set price talk on Thursday morning, according to a market source.

The deal, now sized at $260 million, is talked at a reoffer price of 108.25 to 108.75.

Books close at noon ET Thursday, and the deal is set to price thereafter.

BofA Merrill Lynch, Citigroup Global Markets Inc., UBS Investment Bank, Barclays, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and Blackstone are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes become callable on Jan. 31, 2016 at 105.25.

Proceeds will be used to fund the acquisition of Alleyton and to refinance debt.

The prospective issuer is a Washington, D.C.-based acquirer of heavy-side building materials companies in the aggregates, ready-mix concrete, cement, asphalt paving and construction industries.

The original $250 million issue priced at par in January 2012.

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