Builders FirstSource ceases note exchange

Pro dealer looked to extend debt obligations through $400 million note exchange.

BY HBSDealer Staff

Builders FirstSource has terminated its 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 decided 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 was 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.

The company is expected to return the old notes to eligible holders with the new notes no longer being issued.

Builders FirstSource operates more about 400 locations in 39 states.

Last month Builders FirstSource reported a fourth quarter net income of $52 million, from a net loss of $42.7 million in the fourth quarter 2017. The pro dealer also reported fourth quarter net sales increased 2.1% to $1.81 billion.



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