Builders FirstSource Prices Offering of $700 Million of Senior Notes due 2032

Rhea-AI Summary

Builders FirstSource (NYSE: BLDR) has priced an offering of $700 million in 6.375% unsecured Senior Notes due 2032, increasing the offering by $100 million. The proceeds will be used to redeem outstanding 6.750% Senior Secured Notes due 2027, covering accrued interest and related costs. The redemption is subject to market conditions, and the Notes will not be registered under the Securities Act. Builders FirstSource, the largest U.S. supplier of building products, operates in 42 states, providing a range of construction materials.

Positive

• Successful pricing of $700 million Senior Notes indicates strong investor confidence.
• Use of proceeds aimed at redeeming higher-interest debt may reduce interest expenses.

Negative

• Redemption of existing higher-interest debt is contingent on market conditions, adding uncertainty.

DALLAS, June 01, 2022 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (NYSE: BLDR) (“Builders FirstSource” or the “Company”) today announced that it has priced an offering of $700 million aggregate principal amount of its 6.375% unsecured Senior Notes due 2032 (the “Notes”), which represents a $100 million increase in the previously announced size of the offering. The price to investors will be 100.000% of the principal amount of the Notes.

The Company intends to use the net proceeds from the offering to redeem all of the Company’s outstanding 6.750% Senior Secured Notes due 2027 (“2027 Notes”), including to pay any accrued and unpaid interest thereon, as well as related premiums, fees and expenses, with any remaining net proceeds to be used for general corporate purposes.

Consummation of the offering of the Notes is subject to market and other conditions, and there can be no assurance that the Company will be able to successfully complete these transactions on the terms described above, or at all. Any redemption of the Company’s 2027 Notes would be made solely pursuant to a redemption notice delivered pursuant to the indenture governing the 2027 Notes, and nothing contained in this press release constitutes a notice of redemption of the 2027 Notes.

The Notes will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities law and may not be offered or sold within the United States or to or for the account of any U.S. person, except pursuant to an exemption from the registration requirements thereof. Accordingly, the Notes were offered and sold only to (i) persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the Securities Act) and (ii) non-“U.S. persons” who are outside the United States (as defined in Regulation S under the Securities Act).

This news release shall not constitute an offer to sell or the solicitation of an offer to buy the Notes.

About Builders FirstSource

Headquartered in Dallas, Texas, Builders FirstSource is the largest U.S. supplier of building products, prefabricated components, and value-added services to the professional market segment for new residential construction and repair and remodeling. We provide customers an integrated homebuilding solution, offering manufacturing, supply, delivery and installation of a full range of structural and related building products. We operate in 42 states with approximately 565 locations and have a market presence in 47 of the top 50 and 85 of the top 100 MSA’s, providing geographic diversity and balanced end market exposure. We service customers from strategically located distribution and manufacturing facilities (certain of which are co-located) that produce value-added products such as roof and floor trusses, wall panels, stairs, vinyl windows, custom millwork and pre-hung doors. Builders FirstSource also distributes dimensional lumber and lumber sheet goods, millwork, windows, interior and exterior doors, and other specialty building products.

Forward-Looking Statements

Statements in this news release that are not purely historical facts or that necessarily depend upon future events, including statements about forecasted financial performance or other statements about anticipations, beliefs, expectations, hopes, synergies, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. Readers are cautioned not to place undue reliance on forward-looking statements. In addition, oral statements made by our directors, officers and employees to the investor and analyst communities, media representatives and others, depending upon their nature, may also constitute forward-looking statements. As with the forward-looking statements included in this release, these forward-looking statements are by nature inherently uncertain, and actual results may differ materially as a result of many factors. All forward-looking statements are based upon information available to Builders FirstSource on the date this release was submitted. Builders FirstSource undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including risks or uncertainties related to the continuing COVID-19 pandemic and its impact on the Company’s business and the homebuilding industry, the Company’s growth strategies, including gaining market share and its digital strategies, or the Company’s revenues and operating results being highly dependent on, among other things, the homebuilding industry, lumber prices and the economy, including labor and supply shortages. Builders FirstSource may not succeed in addressing these and other risks. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource’s most recent annual report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) and in the other reports filed by the Company with the SEC. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

Investor Contact:
Michael Neese
SVP, Investor Relations
Builders FirstSource, Inc.
(214) 765-3804

Media Contact:
ICR for Builders FirstSource
bldr@icrinc.com

Source: Builders FirstSource, Inc.

FAQ

What is the offering amount for Builders FirstSource's Senior Notes?

Builders FirstSource has priced an offering of $700 million in Senior Notes.

What is the interest rate on Builders FirstSource's Senior Notes due 2032?

The interest rate on the Senior Notes due 2032 is 6.375%.

Why is Builders FirstSource redeeming its 2027 Senior Secured Notes?

The redemption is funded by the proceeds from the new Senior Notes to lower interest expenses.

What is the implication of the redemption being subject to market conditions?

It indicates that the successful completion of the redemption is uncertain and depends on market factors.

What is Builders FirstSource's operational footprint?

Builders FirstSource operates in 42 states with approximately 565 locations.