Newport Beach-based RSI Home Products Inc. last week raised $525 million in a bond offering, with the bulk of the funds to go toward a buyout of Toronto-based Onex Corp.’s 50% stake in the company.
Onex, a private equity firm, will get $323 million for its stake. RSI Home Products said it plans to use the rest of the proceeds from the offering of five-year senior secured second lien notes to repay existing bank loans.
“The new financial structure is beneficial to the company,” said Ron Simon, chairman and founder of RSI Holding LLC, parent of RSI Home Products. “It will allow us to leverage the financial benefits of the bond market, while maximizing our ability to remain flexible and support company growth.”
Simon declined further comment last week, as the bond offering went to market.
RSI Home Products is a leading seller of kitchen cabinets, bathroom vanities, medicine cabinets, and cultured marble countertop products in the U.S. and Canada.
Onex paid $318 million for its stake in the company in 2008. The firm said it has gotten $148 million in profits from the deal, representing a significant return on its investment over five years.
“We’re pleased to have invested alongside RSI’s founder and management team, and we wish them continued success,” Anthony Munk, a managing director of Onex, said in a prepared statement.
