Builders FirstSource expected to launch $375 million credit facility Friday

By Sara Rosenberg

New York, Jan. 18 - Builders FirstSource Inc. is expected to hold a bank meeting on Friday to launch a proposed $375 million credit facility (B+), according to a market source.

UBS and Deutsche Bank are the lead banks on the deal, with UBS the left lead.

The facility will consist of a $110 million five-year revolver talked at Libor plus 250 basis points, a $250 million six-year first-lien term loan talked at Libor plus 275 basis points and a $15 million six-year prefunded letter-of-credit facility talked at Libor plus 275 basis points, the source said.

Proceeds will be used to pay a $237 million dividend and repay existing debt.

The company is also expected to issue a $250 million second-lien senior secured floating-rate note (B-), the source said.

Builders FirstSource is a Dallas supplier of building products to professional, large-scale homebuilders.

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