This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Builders FirstSource Completes $350 Million Senior Secured Notes Offering And New $175 Million Revolving Credit Facility

DALLAS, May 30, 2013 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:BLDR) , a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, today announced the successful completion of its previously announced private offering of $350 million aggregate principal amount of 7.625% Senior Secured Notes due 2021. In conjunction with the offering, the company also entered into a new 5-year $175 million revolving credit facility (the "Facility") provided by a syndicate of seven financial institutions arranged by SunTrust Robinson Humphrey, Inc. At closing, the company's borrowing availability under the Facility was approximately $162.3 million, after reducing for $12.7 million of outstanding letters of credit ("LC's").

Floyd Sherman, Builders FirstSource Chief Executive Officer, commented, "Today marks a very important day for our company. This financing transaction provides a more permanent capital structure, reduces annual interest by up to $16 million and provides ample liquidity that will allow us to take advantage of the recovering housing market and the growth that comes with it. This refinancing could not have been accomplished without the support and sacrifice of our employees and shareholders. We also appreciate the strong support from our bank partners in getting this transaction completed."

Net proceeds from the offering, together with cash on hand, were used to (i) redeem the company's $139.7 million aggregate principal amount of second priority senior secured floating rate notes due 2016 at par plus accrued and unpaid interest thereon to the redemption date, (ii) pay in full $225.0 million in term loan borrowings outstanding under the company's existing credit facility plus a prepayment premium of approximately $39.5 million and accrued and unpaid interest and terminate the company's existing credit facility, and (iii) pay commissions, fees and expenses in connection therewith.

The Facility provides for a $175 million revolving credit line, subject to borrowing base limitations, which is available for working capital and general corporate purposes. It also provides the company with access to an additional $150 million of potential financing through an accordion feature, which accordion feature is subject to the availability of sufficient borrowing base and additional commitments from lenders. The Facility contains a $50 million letter of credit sublimit, under which the company's $12.7 million of outstanding LC's were transferred. Borrowings under the Facility bear interest at a margin over a base rate or the Eurodollar rate. Loans are secured by a first lien interest in substantially all "liquid" assets of the company, primarily accounts receivable and inventory, and a second lien in substantially all fixed assets and are guaranteed by the company and certain of its subsidiaries.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.19 -1.00%
FB $118.10 0.57%
GOOG $695.89 0.51%
TSLA $229.22 -1.30%
YHOO $35.86 -0.42%


Chart of I:DJI
DOW 17,704.41 -46.50 -0.26%
S&P 500 2,056.36 -7.01 -0.34%
NASDAQ 4,745.3110 -17.9130 -0.38%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs