By Paul A. Harris
Portland, Ore., April 4 - American Builders & Contractors Supply Co. Inc. priced a downsized $500 million issue of eight-year senior notes (B3/B/) at par to yield 5 5/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk set in the 5¾% area.
The bond deal was downsized from $600 million, while at the same time the company upsized its term loan.
Deutsche Bank Securities Inc., BofA Merrill Lynch and UBS Securities LLC were the joint bookrunners.
Proceeds will be used to help finance the redemption of the minority shares held by Advent International, Apollo, and the founding family of the legacy Bradco Supply business, and to redeem all outstanding stock appreciation rights.
The company is a Beloit, Wis.-based building supply company.
| Issuer: | American Builders & Contractors Supply Co. Inc.
|
| Amount: | $500 million, decreased from $600 million
|
| Maturity: | April 15, 2021
|
| Securities: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities Inc., BofA Merrill Lynch, UBS Securities LLC
|
| Coupon: | 5 5/8%
|
| Price: | Par
|
| Yield: | 5 5/8%
|
| First call: | April 15, 2016 at 104.219
|
| Spread: | 426 bps
|
| Trade date: | April 4
|
| Settlement date: | April 16
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A for life
|
| Price talk: | 5¾% area
|
| Marketing: | Roadshow
|
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