HERNDON, Va.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (NASDAQ: BECN) ("Beacon") announced today
the pricing of its previously announced private offering (by a newly
formed wholly-owned subsidiary) of $1.3 billion aggregate principal
amount of 4.875% senior notes due 2025 (the "notes"). The initial
offering price to investors will be 100% of the principal amount
thereof. The offering is expected to close on October 25, 2017, subject
to customary closing conditions.
Concurrently with the closing of the offering, the net proceeds from the
offering, along with certain additional funds, will be deposited in a
segregated escrow account. Following the release of proceeds from escrow
upon satisfaction of the escrow conditions, Beacon expects to use the
net proceeds from the notes offering, together with the net proceeds
from its recently completed underwritten public common stock offering,
the previously announced committed convertible preferred equity
financing from an entity affiliated with the investment firm Clayton,
Dubilier & Rice LLC, and borrowings under Beacon's anticipated new
senior secured credit facilities, to finance the previously announced
acquisition (the "Allied Acquisition") of Allied Building Products Corp.
("Allied"), refinance certain of Beacon's existing indebtedness and pay
related fees and expenses. The Allied Acquisition is expected to close
on January 2, 2018, subject to the satisfaction of customary closing
conditions, and Beacon cannot guarantee that the Allied Acquisition will
be completed on or about such date, or at all.
If the Allied Acquisition is not completed, the notes will be redeemed.
Upon consummation of the Allied Acquisition, the escrow issuer will be
merged with and into Beacon (the "Escrow Merger") and the notes will be
guaranteed, on an unsecured senior basis, by certain of Beacon's and
Allied's subsidiaries.
The notes will be offered only to qualified institutional buyers under
Rule 144A of the Securities Act of 1933, as amended (the "Securities
Act"), and to certain non-U.S. persons in transactions outside the
United States under Regulation S under the Securities Act. The issuance
and sale of the notes and related guarantees have not been and will not
be registered under the Securities Act or the securities laws of any
state or other jurisdiction, and the notes and, from and after the
Escrow Merger, the related guarantees may not be offered or sold in the
United States absent registration or an applicable exemption from the
registration requirements of the Securities Act and other applicable
securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the notes. The notes offering is being
made only by means of a private offering memorandum, and is not being
made to any person in any jurisdiction in which such offer, sale or
solicitation is unlawful.
Forward-Looking Statements
This release contains information about management's view of Beacon's
future expectations, plans, and prospects that constitute
forward-looking statements for purposes of the safe harbor provisions
under the Private Securities Litigation Reform Act of 1995. You can
identify forward-looking statements by the fact that they do not relate
strictly to historic or current facts and often use words such as
"anticipate", "estimate", "expect", "believe", "will likely result",
"outlook", "project" and other words and expressions of similar meaning.
Actual results may differ materially from those indicated by such
forward-looking statements as a result of various important factors,
including, but not limited to, those set forth in the "Risk Factors"
section of Beacon's latest Form 10-K and subsequent SEC filings. The
forward-looking statements included in this press release represent
Beacon's views as of the date of this press release and these views
could change. However, while Beacon may elect to update these
forward-looking statements at some point, Beacon specifically disclaims
any obligation to do so, other than as required by federal securities
laws. These forward-looking statements should not be relied upon as
representing Beacon's views as of any date subsequent to the date of
this press release.
About Beacon Roofing Supply, Inc.
Founded in 1928, Beacon Roofing Supply, Inc. is the largest publicly
traded distributor of residential and commercial roofing materials and
complementary building products, operating 383 branches throughout 48
states in the U.S. and 6 provinces in Canada. To learn more about Beacon
and its family of regional brands, please visit www.becn.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20171011006304/en/
Beacon Roofing Supply, Inc.
Joseph Nowicki, Executive VP & CFO
571-323-3940
JNowicki@becn.com
Source: Beacon Roofing Supply, Inc.
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