Published on 10/23/2019 in the Prospect News High Yield Daily.
New Issue: ABC Supply prices $700 million long eight-year secured notes at par to yield 4%
By Paul A. Harris
Portland, Ore., Oct. 23 – American Builders & Contractors Supply Co., Inc. priced $700 million of senior secured notes due Jan. 15, 2028 (B1/BB+) at par to yield 4% in a quick-to-market Wednesday trade, according to a syndicate source.
The yield printed at the tight end of the 4% to 4¼% yield talk.
BofA Securities Inc., RBC Capital Markets LLC and BNP Paribas Securities Corp. were the joint bookrunners.
The Beloit, Wis.-based distributor of roofing supplies and exterior building products plans to use the proceeds to redeem all of its outstanding 2023 notes and repay certain borrowings under its term loan.
| Issuer: | American Builders & Contractors Supply Co., Inc.
|
| Amount: | $700 million
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| Maturity: | Jan. 15, 2028
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| Securities: | Senior secured notes
|
| Bookrunners: | BofA Securities Inc., RBC Capital Markets LLC, BNP Paribas Securities Corp.
|
| Senior co-managers: | U.S. Bancorp Investments Inc., J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC
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| Co-managers: | Citizens Capital Markets Inc. and Regions Securities Inc.
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| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 234 bps
|
| First call date: | Jan. 15, 2023
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| Trade date: | Oct. 23
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| Settlement date: | Oct. 31
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| Ratings: | Moody's: B1
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 4% to 4¼%
|
| Marketing: | Quick to market
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