Installed Building Products entered into a new five-year, $325 million senior secured credit facility with an accordion feature allowing the company to increase the borrowing capacity to $400 million, subject to certain approvals. The credit facility consists of a $100 million revolving line of credit, a $100 million term loan, and a $125 million delayed draw term loan facility.

KeyBank was lead arranger, sole bookrunner and administrative agent. SunTrust Bank and US Bank both served as joint lead arrangers. Regions Bank was syndication agent and RBC was the documentation agent. Other banks participating in the syndication were BB&T, Associated Bank, Huntington, Citizens, Synovus and First Merchants.

Borrowings under the senior credit facility will bear interest at a rate of LIBOR plus a spread of 1.5% to 2.5%, 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 prior $100 million revolving line of credit, $50 million term loan, and $50 million delayed draw term loan facility.

“With nothing drawn on the $100 million revolver and $125 million delayed draw term loan, this new credit facility further improves our financial flexibility as we continue to capitalize on the new home construction recovery and pursue select acquisitions in our target markets,” said Michael Miller, IBP’s CFO. “We are pleased with the terms of this facility and encouraged by the continued strong support from our lenders in completing this transaction.”

Columbus, OH-based Installed Building Products is the nation’s second largest insulation installer for the residential new construction market.