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Builders FirstSource offers 6 5/8% notes in exchange for 5 5/8% notes
By Susanna Moon
Chicago, March 5 – Builders FirstSource, Inc. is offering to exchange up to $400 million principal amount of its 5 5/8% senior secured notes due 2024 until 11:59 p.m. ET on April 1.
In exchange, the company will issue new 6 5/8% senior secured notes due 2027.
The total exchange value will be par for each $1,000 principal amount of notes tendered for exchange by the early deadline of 5 p.m. ET on March 18.
Holders who tender after the early deadline will receive $950 of new notes per $1,000 principal amount.
The company will also pay accrued interest in cash to but excluding the settlement date.
The exchange offer is conditioned upon a minimum issue of $200 million principal amount of new notes.
The purpose of the exchange is to extend the maturity of the company’s debt obligations “during a time of favorable market conditions,” according to an announcement by the company.
The new notes will be secured by the same collateral as the company’s senior secured credit facilities and existing notes. The new notes will rank pari passu with those facilities and remaining old notes.
Aside from the tenor and coupon, the terms of the new notes will be substantially similar to those of the old notes, the company noted.
Tendered notes may be withdrawn at any time before the early deadline.
The new notes are being offered to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S.
D. F. King & Co., Inc. (888 887-1266, 212 269-5550, to bldr@dfking.com or dfking.com/bldr) is the information agent.
Builders FirstSource is a Dallas-based building materials manufacturer and supplier.
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