Ainsworth Lumber plans to sell $350 million five-year secured notes

By Paul A. Harris

Portland, Ore., Nov. 9 - Ainsworth Lumber Co. Ltd. plans to market a $350 million offering of five-year senior secured notes on a roadshow set to take place during the week ahead, according to a syndicate source.

An investor call is scheduled for Tuesday.

The roadshow wraps up on Thursday, and the deal is set to price thereafter.

Bank of America Merrill Lynch is the bookrunner for the Rule 144A for life deal.

BMO Securities, CIBC World Markets, HSBC, RBC Capital Markets, TD Securities and Scotia Capital are the co-managers.

The notes come with two years of call protection and feature a 101% poison put.

Credit ratings in the single B range are expected.

Proceeds, along with proceeds from a rights offering, a standby purchase and cash on the balance sheet, will be used to repurchase and/or redeem the company's existing notes and term loan.

Ainsworth is a Vancouver, B.C.-based manufacturer of engineered wood products.

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