BMC Stock talks $325 million eight-year notes to yield 5½%-5¾%

By Paul A. Harris

Portland, Ore., Sept. 8 – BMC Stock Holdings, Inc. talked its $325 million offering of eight-year senior secured notes (B3/BB-) to yield 5½% to 5¾%, according to market sources.

Official talk comes on top of initial guidance.

Books close at noon ET on Thursday except for accounts in Boston.

Barclays is the lead left bookrunner. Wells Fargo Securities LLC, Goldman Sachs & Co. and RBC Capital Markets are the joint bookrunners. SunTrust Robinson Humphrey Inc. is the co-manager.

The notes become callable after three years at par plus 75% of the coupon. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during non-call period.

The Atlanta-based building materials distributor plans to use the proceeds to refinance its 9% senior secured notes due 2019 and pay down the balance of its ABL facility.

The issuing entity will be wholly owned subsidiary BMC East, LLC.

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