Anaheim, California-based RSI Home Products Inc. has completed a bond transaction that raised US$525 million in 5-year senior secured second lien notes. Funds generated by the transaction will be used in part to purchase the 50 percent equity stake held by Canadian buyout firm Onex Corp. Onex announced it has received proceeds totaling US$471 million, which accounts for the company buyback and prior distributions, from its original investment in RSI.
RSI Home Products, Inc., the largest manufacturer, in terms of units sold, of kitchen cabinets, bathroom vanities, medicine cabinets and cultured marble countertop products in the U.S. and Canada, announced today that it has completed the transaction for a bond offering which raised $525 million in 5-Year Senior Secured Second Lien Notes. The announcement comes on the heels of Onex Corporation’s (CA:OCX) public announcement to sell its 50 percent interest in RSI Home Products, Inc. to the company for proceeds of approximately $323 million. The funds from the bond transaction will be used to purchase Onex’s equity stake and repay existing bank loans.
“The new financial structure is beneficial to the company,” said Founding Chairman Ronald M. Simon of RSI Holding LLC, parent company of RSI Home Products, Inc. and RSI Development. “It will allow us to leverage the financial benefits of the bond market, while maximizing our ability to remain flexible and support company growth.”
RSI Home Products, Inc. sells kitchen, bath and home organization products in the U.S. and Canada to national retailers such as Home Depot and Lowes, as well as through a dealer network. The company consistently exhibits stand-out performance, despite market conditions. RSI’s unique manufacturing processes allows the company to produce high-quality, low-cost, value-rich products while offering a superior level of customer service.
“We are pleased with the outcome of our partnership with Onex,” said Simon. “When their investment was made in 2008, the economy was falling into a recession and the cabinet industry was rapidly declining. Despite the challenging market conditions, RSI Home Products, Inc. outperformed the competition and demonstrated recession resistance delivering a significant return to its investor.”
About RSI Home Products, Inc.:
Since RSI Home Products, Inc. was founded in 1989 it has been a customer-focused, quality-driven manufacturer of bath, kitchen and home organization products throughout the U.S. and Canada. The company has outpaced its competition and continues to offer high-quality, low-cost, value-rich products. RSI Home Products employs more than 3,500 people and has manufacturing and distribution facilities in California, North Carolina, Texas, and Mexico. For more information, visit www.rsiholdingcorp.com
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