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Builders FirstSource plans $1.35 billion of loans, $750 million bonds
By Sara Rosenberg
New York, April 13 – Builders FirstSource Inc. plans on getting a $1.35 billion credit facility and issuing $750 million of unsecured notes to help fund its acquisition of ProBuild Holdings LLC, according to an 8-K filed with the Securities and Exchange Commission on Monday.
The facility consists of an $800 million ABL revolver with estimated pricing of Libor plus 150 basis points and a $550 million term loan B with estimated pricing of Libor plus 450 bps with a 1% Libor floor, the filing said.
Of the total revolver amount, $295 million is expected to be drawn at close excluding seasonal working capital demand.
The notes, which are backed by a commitment for a $750 million senior unsecured bridge, are estimated to have a cost of 8.5%.
Other funds for the acquisition will come from $100 million in new equity via a marketed follow-on offering.
The company also plans to rollover $350 million of existing Builders FirstSource senior secured notes and will assume $304 million in existing lease finance obligations.
Pro forma net debt to adjusted EBITDA is 5.6 times.
Under the agreement, ProBuild is being purchased in an all-cash transaction valued at about $1.63 billion.
Closing is expected in the second half of this year, subject to customary conditions and regulatory approvals.
Citi and Deutsche Bank are serving as financial advisors to Builders FirstSource and Credit Suisse is serving as financial advisor to ProBuild.
Builders FirstSource is a Dallas-based supplier and manufacturer of structural and related building products for residential new construction. ProBuild is a Denver-based supplier of lumber and building materials to professional builders and contractors.
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