Associated Materials talks $200 million seven-year notes at 10%-10¼%, decreases call protection

By Paul A. Harris

St. Louis, Oct. 28 - Associated Materials, LLC set price talk for its $200 million offering of seven-year senior secured second-lien notes at 10% to 10¼%, a market source told Prospect News on Wednesday.

The Dallas-based building materials company also decreased the call protection to three years from four years.

Pricing is expected on Thursday morning.

J.P. Morgan Securities Inc., UBS Investment Bank and Wells Fargo Securities are joint bookrunners for the Rule 144A and Regulation S with registration rights offering.

The notes feature a springing maturity to Dec. 1, 2013 in the event the holding company notes are not extended past the maturity of the secured notes.

Credit ratings remain to be determined.

Proceeds will be used to redeem the company's senior subordinated notes (B3/CCC).

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