Simpson Thacher Represents Summit Materials in $115 Million High Yield Debt Offering
The Firm represented Summit Materials, LLC and Summit Materials Finance Corp. as co-issuers in connection with a Rule 144A/Regulation S offering of $115 million aggregate principal amount of their 10.5% senior notes due 2020. The notes were issued as additional notes under an existing indenture pursuant to which $250 million aggregate principal amount of 10.5% senior notes due 2020 were issued in January 2012 and $260 million aggregate principal amount of 10.5% senior notes due 2020 were issued in January 2014. The net proceeds from the offering were used to finance Summit’s acquisition of Mainland Sand and Gravel Ltd., to repay borrowings under Summit’s revolving credit facility, to pay fees and expenses and for general corporate purposes. The offering closed on September 8, 2014.
Headquartered in Denver, Colorado, Summit Materials is a privately held building materials company that operates across 18 states and supplies aggregates, cement and related downstream products such as ready-mixed concrete and asphalt paving mix, as well as related paving and construction services. Summit Materials is owned primarily by affiliates of Blackstone Capital Partners V L.P. and Silverhawk Summit, L.P.
The Simpson Thacher team included, among others, Ed Tolley, Edgar Lewandowski, Teresa Chen and Lisa Zhang (Capital Markets); Jonathan Cantor and Andrew Purcell (Tax); Michael Isby (Environmental); and Gregory Grogan and Jennifer Pepin (Executive Compensation and Employee Benefits).