The AZEK Company, a manufacturer of outdoor living products, entered into a first lien term loan credit agreement with Bank of America, as administrative agent and collateral agent, and the lenders and financial institutions party thereto. The new credit agreement provided the company with a $600 million first lien term loan facility, the proceeds of which were applied, among other uses, to prepay the obligations in full under the company’s existing first lien term loan credit agreement, which was due in May 2024. In connection with the entry into the new credit agreement, the existing credit agreement was terminated.
The credit facility will mature in April 2029, subject to acceleration or prepayment. Commencing on Dec. 31, 2022, the credit facility will amortize in equal quarterly installments of 0.25% of the aggregate principal amount of the loans outstanding, subject to reduction for certain prepayments.
The interest rate applicable to loans under the credit facility will be based on term SOFR for the applicable interest period at AZEK’s option, plus an applicable margin of 2.50%.
“We are pleased to announce the closing of this refinancing which provides additional liquidity, strengthens AZEK’s financial position and improves our capital structure to support our future growth ambitions,” Peter Clifford, CFO of AZEK, said.. “We believe the successful completion of this transaction on favorable terms reflects the recognition by the credit market of the significant achievements we have made in executing our growth strategy as well as our continued maturation as a public company.”
In connection with the closing of the credit facility, the company also received a corporate credit rating of BB- from S&P Global Ratings, which is an upgrade from its prior rating.
