Gibraltar Industries, a manufacturer and distributor of products for residential and industrial markets, closed on a new $300 million five-year revolving credit facility. The new facility replaces a $200 million secured revolving credit agreement due to mature in October 2016. Buffalo NY-based Gibraltar also has the option to increase the size of the facility by up to an additional $200 million.
KeyBanc Capital Markets and J.P. Morgan Securities acted as joint lead arrangers for the new facility, with Bank of America, M&T Bank, Citizens Bank and PNC Bank serving as co-documentation agents. Six additional lenders participated
In addition to the increase in capacity, the new agreement will reduce Gibraltar’s cost of borrowing. It has an initial applicable interest rate of LIBOR plus 1.75%, a reduction of 0.50% from the applicable rate on the previous facility. The new facility will be used for general corporate purposes, including funding future acquisitions, and is due to mature in December 2020.
“Thanks to an extraordinary group of banks that have continued to support our growth strategy for many years, we have successfully increased the size, reduced the cost and extended the terms of our revolving credit agreement, while providing increased flexibility as we continue to execute our growth strategy,” said Gibraltar Treasurer Timothy Murphy.