Builders FirstSource (BFS) launched an offering of $250 million aggregate principal amount of 6.75% senior secured notes due 2027. The notes will form part of the same series as the $400 million aggregate principal amount of 6.75% senior secured notes issued on May 30, 2019 and the $75 million aggregate principal amount of 6.75% senior secured notes due 2027 issued on July 25, 2019, according to the company.
The Dallas-based dealer intends to use the net proceeds from the offering to repay a portion of the funds drawn from its revolving credit facility and pay related transaction fees and expenses. Any remaining net proceeds will be used for general corporate purposes. The company recently drew down an additional $150 million under its revolving credit facility to increase its cash on hand in response to the coronavirus (COVID-19) pandemic.
Consummation of the offering of the senior secured notes is subject to market and other conditions, and BFS said there is no assurance that the company will be able to successfully complete these transactions on the terms described.
BFS ranked second on the 2019 ProSales 100 list, generating $7.72 billion in revenue during 2019. The company operates in 40 states with approximately 400 locations.
