Builders FirstSource talks $750 million eight-year senior notes to yield 9¾%-10%; pricing Friday

By Paul A. Harris

Portland, Ore., July 23 – Builders FirstSource, Inc. talked its $750 million offering of eight-year senior notes (Caa2/B-) to yield 9¾% to 10%, according to a syndicate source.

Books close at the end of Thursday’s market session in New York, except for accounts on the West Coast of the United States for whom books are scheduled to remain open until 11 a.m. ET on Friday.

The Rule 144A for life deal is also set to price on Friday.

Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Credit Suisse Securities (USA) LLC, KeyBanc Capital Markets and SunTrust Robinson Humphrey Inc. are the joint bookrunners.

The notes come with three years of call protection and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

Builders FirstSource, a Dallas-based building products supplier and manufacturer, plans to use the proceeds to help finance the acquisition of Denver-based building materials supplier ProBuild Holdings LLC, as well as to repay certain Builders FirstSource debt and the existing ProBuild debt.

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