Contech Announces Wells Fargo Credit Facility, New Ownership
Contech Engineered Solutions LLC (formerly Contech Construction Products Inc.), a provider of engineering and site solutions for the residential, commercial and infrastructure markets, announced several positive developments that position the company for the future.
Contech announced that it has new ownership in place; equity investors including Anchorage Capital Group, Littlejohn & Co., Tennenbaum Capital Partners and Farallon Capital Management. These investors have worked with Contech, its equity partners and its senior lenders to recapitalize the company and secure long-term financing. The company also announced that as a result of its growth in new markets and geographies, and the build-out of its product lines for the residential, commercial and infrastructure markets, it has changed its corporate name to Contech Engineered Solutions, effective immediately.
“We believe this new name more accurately reflects who we are today. We do more than just provide construction products – we provide innovative engineering and site solutions for world-class customers. We remain laser-focused on delivering the best customer experience while providing the market with sustainable site solutions. Our commitment to go beyond customers’ expectations with excellent product quality and reliability, combined with superior ongoing service and support, is the Contech difference,” said Ron Keating, Contech’s president and CEO.
“We’re also pleased with our new owners and we look forward to working with them as we expand Contech’s leading global market position. We anticipate a successful 2012 and are excited about the many opportunities we see in our target markets,” Keating continued.
Additionally, Contech announced that it secured new long-term financing and entered into a new credit facility with Wells Fargo Bank as administrative agent in the aggregate principal amount of $125 million, as well as a revolving loan commitment of up to $100 million. As part of the new financing agreements, new ownership structure and the company’s ongoing capital improvement initiatives, it has successfully removed 100% of its past revolving and term loan obligations.
“This is yet another significant milestone for our company, as we now have the capital structure to execute on our strategy of enhancing our product and service offerings and building our market leading positions across the globe. Over the past two years, we have successfully removed over $600 million of debt and have created almost $100 million of liquidity under our new revolver. We have the necessary resources to grow and the commitment from leadership to deliver the best customer experience in the industry,” Keating concluded.