Huttig Building Products Enters Into New $250 Million Credit FacilityOctober 4th, 2021 by Editor
Late last week, Huttig Building Products Inc, domestic distributor of millwork, building materials and wood products, entered into a new $250 million senior credit facility. The facility has a five-year tenure and can be expanded to $325 million through an uncommitted $75 million accordion, subject to certain conditions.
JPMorgan Chase Bank, Bank of America, Fifth Third Bank – National Association, Regions Bank and BMO Harris Bank are all lenders in the new facility, which replaces the Company’s existing credit facility.
“Our new credit facility will immediately provide us with increased financial flexibility as we continue to execute our strategy,” said Philip Keipp, vice president and chief financial officer. “This agreement is reflective of our strong financial profile as we significantly strengthened our balance sheet in a challenging business environment over the past eighteen months. We are pleased with the high level of interest from the lending community while continuing our relationship with JPMorgan and Bank of America. We are also pleased with the addition of Fifth Third, Regions and BMO Harris to our lending group.”
Pricing for the new credit facility is based on LIBOR plus 125 to 175 basis points, depending on levels of average availability. At closing, the initial pricing was LIBOR plus 125 basis points.
Further details concerning the new credit facility are contained in the Company’s Current Report on Form 8-K which has been filed with the Securities and Exchange Commission.