Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Builders FirstSource Completes LIBOR-Based Debt Exchange |
January 23, 2010
According to a company press release, Builders FirstSource, a building product supplier and manufacturer, has completed a debt exchange with notes whose rates are based on LIBOR, the London Interbank Offered Rate. LIBOR is a filtered average of rates that banks charge each other for unsecured, short-term loans.
Builders FirstSource’s debt exchange is part of an overall financial program to reduce indebtedness that also includes a stock offering. The company is exchanging notes maturing in 2012 with new LIBOR-based notes maturing in 2016. The rate on the new notes is LIBOR plus 1000 basis points (10%) with a LIBOR floor of 3%. LIBOR has been at or near historic lows in recent months, well below the stated LIBOR floor.