Smyrna Ready Mix LLC today completed its $830 million offering of eight-year senior secured notes via J.P. Morgan, BNP Paribas, BofA Securities, and Goldman Sachs. The deal was upsized from $515 million and pricing finalized at the wide end of guidance, according to market sources.
Proceeds will be used to fund certain acquisitions, to refinance existing debt and for general corporate purposes. Financing also includes a $100 million ABL revolver due 2025 with a springing fixed-charge covenant, S&P Global Ratings said in a report. Due to the bond offering's size increase, the issuer pulled a proposed $315 million, seven-year term loan B.
Smyrna Ready Mix LLC is a provider of ready-mix concrete, aggregates, and other concrete-related products and services. Terms:
| Issuer | SRM Escrow Issuer LLC | |
| Ratings | B+/B1 | |
| Amount | $830 million | |
| Issue | Senior secured (144A/Reg S for life) | |
| Coupon | 6% | |
| Price | 100 | |
| Yield | 6% | |
| Spread | T+530 | |
| Maturity | Nov. 1, 2028 | |
| Call | Non-call three (first call at par +50% coupon) | |
| Trade (date) | Oct. 30, 2020 | |
| Settle | Nov. 6, 2020 (T+5) | |
| Joint bookrunners | JPM/BNPP/BofA/GS | |
| Price talk | 5.75%-6%; 5% area IPT | |
| Notes | Upsized from $515 million; CoC at 101 |