By Paul A. Harris
Portland, Ore., May 1 – American Builders & Contractors Supply Co., Inc. (ABC Supply Co., Inc.) priced a downsized $600 million issue of eight-year senior notes (B3/B+) at par to yield 5 7/8% in a quick-to-market Tuesday trade, according to an informed source.
The issue size was decreased from $800 million.
The yield printed at the wide end of yield talk in the 5¾% area and in line with initial talk in the mid-to-high 5% area.
Deutsche Bank Securities Inc. managed the sale.
The Beloit, Wis.-based wholesale distributor of roofing and exterior building products plans to use a portion of the proceeds to refinance $200 million of its 5 5/8% senior notes due 2021 via a tender offer announced Tuesday, and/or by means of redemption at the current redemption price of 101.406. Proceeds will also be used to repay debt under the ABL facility and for general corporate purposes.
| Issuer: | American Builders & Contractors Supply Co., Inc.
|
| Amount: | $600 million, downsized from $800 million
|
| Maturity: | Eight years
|
| Securities: | Senior notes
|
| Lead manager: | Deutsche Bank Securities Inc.
|
| Coupon: | 5 7/8%
|
| Price: | Par
|
| Yield: | 5 7/8%
|
| Call protection: | Three years
|
| Trade date: | May 1
|
| Ratings: | Moody's: B3
|
| S&P: B+
|
| Distribution: | Qualified institutional investors
|
| Price talk: | 5¾% area
|
| Marketing: | Quick to market
|
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