Builders FirstSource Inc. announced a private offering, subject to market and other conditions, of $350 million aggregate principal amount of senior secured notes due 2021. Obligations under the Notes will initially be guaranteed by all of the company’s operating subsidiaries and certain of its non-operating subsidiaries.

In connection with the offering, the company intends to enter into a new senior-secured ABL revolving credit facility. Such facility is expected to provide for revolving credit borrowings of up to $175.0 million and is expected to be undrawn at closing, according to the company.

“The company intends to use the net proceeds from the offering, together with cash on hand, to (i) redeem its $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) repay in full $225.0 million in term loan borrowings outstanding under its existing credit facility plus a prepayment premium of approximately $39.1 million and accrued and unpaid interest and terminate its existing credit facility and (iii) pay fees and expenses in connection therewith.”

The Notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act of 1933.

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