By Paul A. Harris
Portland, Ore., Sept. 15 – Specialty Building Products Holdings, LLC, doing business at U.S. Lumber Group, priced an upsized $600 million issue of six-year senior secured notes (B3/B-) at par to yield 6 3/8% on Tuesday, according to a syndicate source.
The issue size increased from $575 million.
The yield printed 12.5 basis points tighter than the 6½% to 6¾% yield talk.
BofA Securities Inc., Nomura Securities International Inc., RBC Capital Markets Corp., Truist Securities Inc. and Wells Fargo Securities LLC are the joint bookrunners.
SBP Finance Corp. is a co-issuer of the notes.
The Atlanta-based two-step distributor of specialty building products plans to use the proceeds to repay debt under its senior secured term loan and fund a distribution to its sponsor.
| Issuers: | Specialty Building Products Holdings, LLC and SBP Finance Corp.
|
| Amount: | $600 million, increased from $575 million
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| Maturity: | Sept. 30, 2026
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| Securities: | Senior secured notes
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| Bookrunners: | BofA Securities Inc., Nomura Securities International Inc., RBC Capital Markets Corp., Truist Securities Inc. and Wells Fargo Securities LLC
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| Coupon: | 6 3/8%
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| Price: | Par
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| Yield: | 6 3/8%
|
| Spread: | 601 bps
|
| Call protection: | Two years
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| Trade date: | Sept. 15
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| Settlement date: | Sept. 30
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| Ratings: | Moody's: B3
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| S&P: B-
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| Distribution: | Rule 144A for life
|
| Price talk: | 6½% to 6¾%
|
| Marketing: | Roadshow
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