By Paul A. Harris
Portland, Ore., Feb. 6 – Builders FirstSource Inc. priced an upsized $550 million issue of 10-year senior notes (B3/BB-) at par to yield 5% in a Thursday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of the 5% to 5¼% yield talk and tighter than the 5¼% to 5½% initial guidance.
Credit Suisse Securities (USA) LLC was the left lead bookrunner. Joint bookrunners were BofA Securities Inc. and Citigroup Global Markets Inc.
Timing was accelerated. When announced, the Builders FirstSource offering was scheduled to remain in the market until Friday.
The Dallas-based manufacturer and supplier of building materials plans to use the proceeds to redeem all 5 5/8% secured notes due 2024. The incremental proceeds resulting from the $50 million upsize will be used to fund a special 10% call of the senior notes due 2027.
| Issuer: | Builders FirstSource, Inc.
|
| Amount: | $550 million, increased from $500 million
|
| Maturity: | March 1, 2030
|
| Securities: | Senior notes
|
| Left lead bookrunner: | Credit Suisse Securities (USA) LLC
|
| Joint bookrunners: | BofA Securities Inc. and Citigroup Global Markets Inc.
|
| Coupon: | 5%
|
| Price: | Par
|
| Yield: | 5%
|
| Spread: | 337 bps
|
| First call: | March 1, 2025 at 102.5
|
| Trade date: | Feb. 6
|
| Settlement date: | Feb. 11
|
| Ratings: | Moody's: B3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5% to 5¼%
|
| Marketing: | Drive-by
|
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