Quanex Building Products has entered into a new senior secured amended and restated credit facility due 2023, comprising a $325 million revolver.
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The new facility replaces the company’s existing $150 million term loan A and $300 million revolving credit facilities. Borrowings under the New Facility will bear a tiered interest rate based on Quanex’s consolidated leverage ratio. At the time of closing, borrowings under the New Facility totaled approximately $205 million.
Brent Korb, senior vice president of Finance and CFO, said, “The new facility extends the maturity date on our outstanding debt by more than two years, is less restrictive and gives us more flexibility with respect to returning capital to shareholders. In addition, the new pricing grid is more favorable by 25 basis points across all tiers and is a testament to the progress we have made toward improving our leverage profile over the past two years.”
Wells Fargo Securities and Merrill Lynch served as the joint lead arrangers and joint bookrunners for the new senior credit facilities with Wells Fargo Bank serving as administrative agent.
Quanex Building Products is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.
