Beacon Roofing Raises $500M Through Debt Offering

Beacon Roofing Supply Inc BECN has commenced a private offering of $500.0 million of senior secured notes due 2030.

The notes will be fully and unconditionally guaranteed by Beacon Sales Acquisition Inc. 

The offering is subject to market and other conditions, and there is no assurance that the offering will be completed.

Beacon intends to use the net proceeds from the offering, together with cash on hand and available borrowings under its senior secured asset-based revolving (ABL) credit facility, to consummate the previously announced repurchase of all 400,000 outstanding shares of Series A Cumulative Convertible Participating Preferred Stock held by an entity affiliated with the Clayton Dubilier & Rice, LLC investment firm for an aggregate cash amount equal to $804.5 million.

Also, it will use the fund to pay all accrued and unpaid dividends and pay all related transaction fees and expenses.

The company held $74.2 million in cash and equivalents as of March 31, 2023.

Price Action: BECN shares are trading higher by 0.51% at $84.46 on the last check Monday.