Builders FirstSource (BFS) said today that it intends to offer $350 million in senior secured notes that will go toward paying down $364.7 million in current debt.
The Dallas-based supplier and manufacturer of structural and related building products for residential new construction will enter into a new senior secured ABL (asset-backed lending) revolving credit facility of up to $175 million in financing. Companies use ABL financing when they cannot raise cash through capital markets or traditional unsecured or mortgage-backed sources.
BFS will use net proceeds from the offering, along with cash on hand, to redeem $139.7 million in unsecured debt due in 2016 along with unpaid interest on the debt.
BFS will also repay in $225 million term loan borrowings under its existing credit facility, plus a prepayment premium of approximately $39.1 million and accrued and unpaid interest, terminate its existing credit facility, and pay fees and expenses in connection with the offering.
Obligations under the notes are said to be initially guaranteed by all of the company's operating subsidiaries and certain of its non-operating subsidiaries.
In its 2013 first quarter filing, BFS reported assets of $563.5 million, including $117.7 million in cash, $137.4 million in accounts receiveable, $42.4 million for property, plants and equipment, and $111.2 million in goodwill.
The company reported 1st quarter sales of $319.7 million, representing a 45.7% increase over sales in the prior year quarter. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) for the current quarter was $5.4 million, a $7.5 million gain over an adjusted EBITDA first-quarter 2012 loss of $2.1.
BFS posted an $11.8 million loss for the first quarter of the year, compared to a $19.2 million loss in the first quarter of 2012.
Builders FirstSource operates 53 distribution centers and 44 manufacturing facilities in nine states, principally in the southern and eastern U.S. Manufacturing facilities include plants that manufacture roof and floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork, and pre-hung doors.
The company also distributes windows, interior and exterior doors, dimensional lumber and lumber sheet goods, millwork, and other building products.
Builders FirstSource ranked eighth on the 2012 ProSales 100 ranking of the top U.S. building material dealers with $779 million in sales to professional builders and contractors across 95 branches in the U.S.