Installed Building Products, Inc. (the “Company”) (NYSE:IBP), an
industry-leading installer of insulation and other complementary
building products, announced today that it has entered into a new five
year, $200 million senior secured credit facility with an accordion
feature allowing the Company to increase the borrowing capacity to $225
million, subject to certain approvals. The credit facility consists of a
$100 million revolving line of credit, a $50 million term loan, and a
$50 million delayed draw term loan.
Borrowings under the senior credit facility will bear interest at a rate
of LIBOR plus a spread of 1.25% to 2.25%, depending on IBP’s leverage
ratio. The new credit facility will be available for general corporate
purposes and growth initiatives. This new credit facility replaces the
Company’s prior $75 million revolver and $25 million term loan.
“This expanded credit facility provides us with an attractive source of
capital and further enhances our ability to continue growing our
operations in select markets across the United States,” stated Michael
Miller, IBP’s Chief Financial Officer. “We are pleased with the terms of
the facility and encouraged by the strong support from our lenders in
completing this transaction.”
The credit facility was led by a syndicate of financial institutions
including KeyBank National Association as joint lead arranger, sole book
runner and administrative agent, SunTrust Bank as joint lead arranger
and co-syndication agent, Regions Bank, US Bank, Royal Bank of Canada,
Associated Bank, Branch Banking & Trust Company and The Huntington
National Bank.
About Installed Building Products
Installed Building Products, Inc. is the nation's second largest
insulation installer for the residential new construction market and
also a diversified installer of complementary building products,
including garage doors, rain gutters, shower doors, closet shelving and
mirrors, throughout the United States. The Company manages all aspects
of the installation process for its customers, including direct
purchases of materials from national manufacturers, supply of materials
to job sites and quality installation. The Company offers its diverse
portfolio of services for new and existing single-family and multifamily
residential, and commercial building projects from its national network
of branch locations.
Forward‐Looking Statements:
This press release contains forward-looking statements within the
meaning of the federal securities laws, including with respect to the
expansion of our operations, growth of our business and the continued
strengthening of our financial management. Forward-looking statements
may generally be identified by the use of words such as "anticipate,"
"believe," "expect," "intends," "plan," and "will" or, in each case,
their negative, or other variations or comparable terminology. These
forward-looking statements include all matters that are not historical
facts. By their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on circumstances
that may or may not occur in the future. As a result, actual events may
differ materially from those expressed in or suggested by the
forward-looking statements. Any forward-looking statement made by the
Company in this press release speaks only as of the date hereof. New
risks and uncertainties come up from time to time, and it is impossible
for the Company to predict these events or how they may affect it. The
Company has no obligation, and does not intend, to update any
forward-looking statements after the date hereof, except as required by
federal securities laws.
Copyright Business Wire 2015