KeyBank Agents IBP $200MM Facility
Installed Building Products an industry-leading installer of insulation and other complementary building products, entered into a new five-year, $200 million senior 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 credit line, a $50 million term loan and a $50 million delayed draw term loan.
The facility was led by a syndicate of financial institutions including KeyBank as joint lead arranger, sole bookrunner and administrative agent, SunTrust Bank as joint lead arranger and co-syndication agent, Regions Bank, US Bank, Royal Bank of Canada, 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 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.”
Installed Building Products is an insulation installer for the residential new construction market and a diversified installer of complementary building products.