Builders FirstSource prices $750 million senior notes offering

IRVING, Texas - Builders FirstSource, Inc. (NYSE: BLDR), a leading U.S. supplier of building products with a market capitalization of $12.37 billion, has priced its offering of $750 million in senior unsecured notes at a 6.750% interest rate, with maturity set for 2035. The offering, which is slated to close on May 8, 2025, marks a $250 million increase from the initial announcement.

The company has stated its intention to use the net proceeds from the sale of these notes to repay existing debt under its senior secured ABL facility. With total debt of $5.1 billion and a healthy current ratio of 1.82, InvestingPro data shows the company maintains strong liquidity with assets well-covering short-term obligations. The notes have not been registered under the Securities Act of 1933 or any state securities laws and will be offered only to qualified institutional buyers and non-U.S. persons in compliance with the applicable exemptions.

This strategic financial move comes as Builders FirstSource continues to solidify its position as the largest supplier in the U.S. to the professional market segment for new residential construction, as well as for repair and remodeling, generating annual revenues of $16.17 billion. The company boasts a significant presence in 43 states and services customers from nearly 600 locations. According to InvestingPro analysis, the stock is currently trading near its 52-week low of $110.84, potentially presenting an opportunity for investors. Get access to 12+ additional exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.

The sale of the notes is subject to customary closing conditions, and the company has made it clear that this announcement does not constitute an offer to sell or a solicitation of an offer to buy the notes. This financial maneuver is part of Builders FirstSource’s broader strategy to manage its debt portfolio effectively and maintain a strong balance sheet.

Investors are reminded that statements regarding the offering of the notes may be forward-looking and involve risks and uncertainties. Builders FirstSource has indicated that it undertakes no obligation to update any forward-looking statements, which are subject to factors beyond the company’s control.

The information reported is based on a press release statement by Builders FirstSource, Inc.

In other recent news, Builders FirstSource reported its first-quarter 2025 earnings, surpassing Wall Street expectations with an adjusted earnings per share of $1.51, compared to the projected $1.42. The company’s revenue reached $3.7 billion, slightly above the anticipated $3.67 billion, despite a 6% decline in net sales year-over-year. Additionally, Builders FirstSource announced plans to offer $500 million in unsecured Senior Notes due in 2035, intending to use the proceeds to repay existing debt under its Asset-Based Lending Facility. The completion of this offering is subject to market conditions and other factors. Meanwhile, Stifel analysts revised the company’s price target to $118 from $125, maintaining a Hold rating due to a reduction in guidance and a softer outlook for the second quarter. Stifel’s analysis highlighted concerns about competitive pressure on margins and a weak volume outlook, though they acknowledged the company’s long-term potential. These developments reflect the company’s ongoing efforts to navigate market challenges while focusing on digital sales expansion and productivity savings.

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