Masonite International announced last week a proposal to issue $300 million aggregate principal amount of senior unsecured notes due 2030 in a private offering. The company says the offer is exempt from the registration requirements of the Securities Act of 1933, as amended, subject to market and other conditions.

The company intends to use the net proceeds from the sale of the notes, together with existing available cash balances, to redeem all $300 million aggregate principal amount of its existing 5.75% senior notes due in 2026. Redeeming the 2026 notes would come at a redemption price equal to 100% of the principal amount, plus a “make-whole” premium and accrued and unpaid interest , but not including, the redemption date, and to pay related fees and expenses. Masonite’s obligation to redeem the 2026 Notes will be conditioned upon the consummation of this offering of notes.

The 2030 notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act, and outside the United States, only to non-U.S. investors pursuant to Regulation S of the Securities Act. These notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from, or a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

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