Huttig Building Products, a distributor of millwork, building materials and wood products, entered into a new $250 million senior credit facility. The facility has a five-year tenure and can be expanded to $325 million through an uncommitted $75 million accordion, subject to certain conditions.
JPMorgan Chase is the administrative agent, joint bookrunner and joint lead arranger for the facility. Bank of America and Fifth Third are joint bookrunners and joint lead arrangers. Regions Bank and BMO Harris are also lenders in the new facility. This new credit facility replaces Huttig Building Products’ existing credit facility.
“Our new credit facility will immediately provide us with increased financial flexibility as we continue to execute our strategy,” Philip Keipp, vice president and CFO of Huttig Building Products, said. “This agreement is reflective of our strong financial profile, as we significantly strengthened our balance sheet in a challenging business environment over the past 18 months. We are pleased with the high level of interest from the lending community while continuing our relationship with JPMorgan and Bank of America. We are also pleased with the addition of Fifth Third, Regions and BMO Harris to our lending group.”
Pricing for the new credit facility is based on LIBOR plus 125 to 175 basis points, depending on levels of average availability. At closing, the initial pricing was LIBOR plus 125 basis points.