American Builders driving by with $350 million 8.5-year senior notes; initial talk low 4% area

By Paul A. Harris

Portland, Ore., April 27 – American Builders & Contractors Supply Co. Inc. plans to price a $350 million offering of senior notes due Nov. 15, 2029 (B1/B+) in a Tuesday drive-by trailing a conference call with investors, according to a syndicate source.

Initial guidance is in the low 4% area.

Left lead bookrunner BNP Paribas Securities Corp. will bill and deliver. RBC Capital Markets LLC and BofA Securities Inc. are joint bookrunners.

U.S. Bancorp Investments Inc., Truist Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC are the co-managers.

The Rule 144A and Regulation S for life 8.5-year notes become callable after Nov. 15, 2024 at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Beloit, Wis.-based wholesale roofing company plans to use the proceeds to fund the tender offer for its 5 7/8% senior notes due 2026.

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