By Abigail W. Adams
Portland, Me., Nov. 2 – Specialty Building Products Holdings LLC, doing business as U.S. Lumber Group and SBP Finance Corp., sold a $50 million add-on to its 6 3/8% senior secured notes due Sept. 30, 2026 (B3/B-) in a Monday drive-by, according to a market source.
The notes priced at 100.75 to yield 6.22%.
BofA Securities Inc. was the bookrunner for the Rule 144A and Regulation S for life offering.
The add-on will become immediately fungible to the existing notes.
There is a poison put of 101 and a 40% equity clawback until Sept. 30, 2022.
Proceeds will be used for general corporate purposes, which may include acquisitions.
The company originally priced $600 million of the 6 3/8% senior secured notes due 2026 at par on Sept. 15.
Specialty Building Products is an Atlanta-based distributor of specialty building products.
| Issuer: | Specialty Building Products Holdings LLC
|
| Amount: | $50 million
|
| Maturity: | Sept. 30, 2026
|
| Securities: | Add-on to 6 3/8% senior secured notes due 2026
|
| Bookrunner: | BofA Securities Inc.
|
| Coupon: | 6 3/8%
|
| Price: | 100.75
|
| Yield: | 6.22%
|
| Spread: | 573 bps
|
| Call protection: | Two years
|
| Equity clawback: | For 40% until Sept. 30, 2022
|
| Trade date: | Nov. 2
|
| Settlement date: | Nov. 5
|
| Ratings: | Moody's: B3
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Marketing: | Quick to market
|
| Original issue: | $600 million priced at par on Sept. 15, 2020
|
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