Bank Syndicate Leads Installed Building Products $100MM Facility
Installed Building Products announced it entered into a new five-year, $100 million senior secured credit facility consisting of a $75 million revolving line of credit and a $25 million term loan. The credit facility was led by a syndicate of financial institutions including KeyBank as lead arranger, sole bookrunner and administrative agent; Suntrust Bank as syndication agent; and Royal Bank of Canada, Associated Bank, BB&T and The Huntington National Bank.
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 working capital needs, general corporate purposes and growth initiatives. This new credit facility replaces the company’s prior $50 million revolving credit facility, which was scheduled to mature in May 2016.
“The additional liquidity from our expanded credit facility provides us with significant capacity to continue executing on our strategic growth initiatives,” stated Michael Miller, IBP’s CFO. “The new credit facility improves our financial flexibility as we continue to capitalize on the new home construction recovery and pursue select acquisitions in our target markets.”
Installed Building Products is an insulation installer for the residential new construction market and a diversified installer of complementary building products.