Building Materials talks $250 million secured notes in 9% area

By Paul A. Harris

Portland, Ore., Sept. 12 - Building Materials Holding Corp. talked its $250 million offering of five-year senior secured notes (Caa1/B-) to yield in the 9% area, a market source said on Thursday.

Books close at noon ET Friday, and the deal is set to price thereafter.

J.P. Morgan Securities LLC and Moelis & Co. are the joint bookrunners for the Rule 144A and Regulation S for life notes.

The notes become callable in two years at par plus 75% of the coupon.

The Vancouver, B.C.-based supplier of building products and services plans to use the proceeds to repay its term loan and revolver and to collateralize its letter of credit.

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