Patrick Industries, Inc. Announces Proposed Offering of $225,000,000 Convertible Senior Notes Due 2028

About this update from Patrick Industries, Inc.

[{"type":"text","content":"ELKHART, Ind., Dec. 7, 2021 /PRNewswire/ -- Patrick Industries, Inc. (NASDAQ: PATK) (\"Patrick\" or the \"Company\") today announced its intention to offer, subject to market conditions and other factors, $225,000,000 aggregate principal amount of its convertible senior notes due 2028 (the \"Notes\") in a private placement to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the \"Securities Act\"). The Company also expects to grant the initial purchasers of the Notes an option to purchase, within a 13-day period beginning on, and including, the initial closing date of the offering, up to an additional $33,750,000 aggregate principal amount of the Notes.\n\n \n \n \n \n \n \n\n \nThe Company intends to use a portion of the net proceeds from the offering to pay the cost of the convertible note hedge transactions described below (after such cost is partially offset by the proceeds to the Company from the sale of the warrant transactions described below). The Company expects to use the remaining net proceeds from the offering for general corporate purposes, including acquisitions. Pending these uses, the Company intends to use the remainder of the net proceeds from the offering to repay a portion of the amounts due under its current credit facility.\nThe Notes will be senior unsecured obligations of the Company. The Notes will be guaranteed on a senior unsecured basis by each of the Company's current and future wholly-owned domestic subsidiaries that guarantee the Company's borrowings under its senior secured credit facility and certain of its outstanding existing senior notes. The Notes will mature on December 1, 2028, unless earlier converted, redeemed or repurchased. The Notes are expected to pay interest semiannually in arrears. The Company will satisfy any conversion by paying cash up to the aggregate principal amount of the Notes to be converted and by paying or delivering, as the case may be, cash, shares of the Company's common stock, or a combination of cash and shares of the Company's common stock, at its election, in respect of the remainder, if any, of its conversion obligation in excess of the aggregate principal amount of the Notes being converted. Prior to June 1, 2028, the Notes may be converted at the option of the holders only upon ...

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