Building Materials restructures $325 million note offering, sets talk at Libor plus 475-500 bps

By Paul A. Harris

St. Louis, March 2 - Building Materials Corp. of America has restructured its $325 million offering of eight-year senior secured notes (Caa1/B), eliminating a proposed fixed-rate tranche, according to market sources.

At Friday's close, the offering was comprised entirely of floating-rate notes, which are talked at Libor plus 475 to 500 basis points.

Deutsche Bank Securities, Bear Stearns and JP Morgan are joint bookrunners for the Rule 144A for life deal.

The notes will be non-callable for two years.

The company is also putting in place a $1.575 billion credit facility.

Proceeds will be used to fund the acquisition of Elk Corp.

Building Materials Corp. is a Wayne, N.J., building products manufacturer.

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