BFS launches $300 million note offering
Builders FirstSource, Inc. (BFS) has launched an offering of $300 million aggregate principal amount of senior secured notes due 2027.
The Dallas, Texas-based pro dealer said that it intends to use the net proceeds from the offering to repay a portion of the funds drawn under its existing term loan credit facility and pay related transaction fees and expenses.
BFS said the offering is subject to market and other conditions, and there is no assurance that the company will be able to successfully complete the transaction.
This past March, BFS terminated an offer to exchange up to $400 million aggregate principal amount of its 5.625% Senior Secured Notes due 2024 for new 6.625% Senior Secured Notes due 2027.
The Dallas-based pro dealer said it had to pull the plug on the note exchange because it doesn’t expect to meet the minimum issuance condition of $200 million principal on the new notes.
March 18 had been the deadline for note holders to make an exchange. Under conditions of the exchange, note holders needed to turn in $1,000 in old notes to receive $1,000 in new notes.
Extending the maturity of existing debt obligations tied to the old notes was the primary goal of the exchange.
Earlier this month BFS posted a net income of $35.7 million – nearly 54% higher than a net income of $23.2 million for the same period last year.
The Dallas, Texas-based pro dealer said that it intends to use the net proceeds from the offering to repay a portion of the funds drawn under its existing term loan credit facility and pay related transaction fees and expenses.
BFS said the offering is subject to market and other conditions, and there is no assurance that the company will be able to successfully complete the transaction.
This past March, BFS terminated an offer to exchange up to $400 million aggregate principal amount of its 5.625% Senior Secured Notes due 2024 for new 6.625% Senior Secured Notes due 2027.
The Dallas-based pro dealer said it had to pull the plug on the note exchange because it doesn’t expect to meet the minimum issuance condition of $200 million principal on the new notes.
March 18 had been the deadline for note holders to make an exchange. Under conditions of the exchange, note holders needed to turn in $1,000 in old notes to receive $1,000 in new notes.
Extending the maturity of existing debt obligations tied to the old notes was the primary goal of the exchange.
Earlier this month BFS posted a net income of $35.7 million – nearly 54% higher than a net income of $23.2 million for the same period last year.