By Paul A. Harris
Portland, Ore., April 27 – American Builders & Contractors Supply Co., Inc. priced an upsized $400 million issue of 8.5-year senior notes (B1/B+) at par to yield 3 7/8% in a Tuesday drive-by, according to a syndicate source.
The issue size increased from $350 million.
The yield printed at the tight end of yield talk in the 4% area. Initial guidance was in the low 4% area.
Left lead bookrunner BNP Paribas Securities Corp. will bill and deliver. Joint bookrunners were RBC Capital Markets LLC and BofA Securities Inc.
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.
| Issuer: | American Builders & Contractors Supply Co., Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Nov. 15, 2029
|
| Securities: | Senior notes
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| Left bookrunner: | BNP Paribas Securities Corp. (bill and deliver)
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| Joint bookrunners: | RBC Capital Markets LLC and BofA Securities Inc.
|
| Co-managers: | U.S. Bancorp Investments Inc., Truist Securities Inc., Wells Fargo Securities LLC and J.P. Morgan Securities LLC
|
| Coupon: | 3 7/8%
|
| Price: | Par
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| Yield: | 3 7/8%
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 15, 2024, then callable at 101.938
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| Trade date: | April 27
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| Settlement date: | May 13
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| Ratings: | Moody's: B1
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| S&P: B+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 4% area
|
| Marketing: | Drive-by
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