By Paul A. Harris
Portland, Ore., Feb. 28 – Summit Materials, Inc. priced $300 million of eight-year senior notes (B3/BB) at par to yield 6½% in a Thursday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 6½% area and tighter than initial guidance in the 6¾% area.
The deal was playing to an $800 million order book around midday Thursday, a trader said.
BofA Merrill Lynch was the lead.
The Denver-based supplier of aggregates, cement, ready-mix concrete and asphalt plans to use the proceeds to redeem all $250 million of its 8½% senior notes due 2022, with any remaining proceeds to be used for general corporate purposes, including acquisitions.
| Issuer: | Summit Materials, Inc.
|
| Amount: | $300 million
|
| Maturity: | March 15, 2027
|
| Securities: | Senior notes
|
| Lead: | BofA Merrill Lynch
|
| Coupon: | 6½%
|
| Price: | Par
|
| Yield: | 6½%
|
| Call protection: | Three years
|
| Trade date: | Feb. 28
|
| Settlement date: | March 15
|
| Ratings: | Moody's: B3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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