84 Lumber has entered into a new seven-year $310 million senior secured term loan B facility and five-year $400 million asset based revolving credit facility.
The proceeds will be used to refinance the $307.5 million outstanding term loan B and $400 million ABL revolver.
In addition to extending the maturities, the term loan B reduced pricing by 100 basis points to LIBOR plus 425 basis points. As a result of the refinancing, the company now has no debt maturities prior to 2024.
Wells Fargo Securities and PNC Capital Markets served as joint lead arrangers and bookrunners on the transaction.
“We continuously evaluate opportunistic transactions that not only lower our interest expense, but strengthen our balance sheet and improve cash flows. The new term loan facility will reduce our future annual cash interest by approximately $3 million, as well as extend our debt maturity profile,” said Maggie Hardy Knox, president of 84 Lumber.
84 Lumber’s sales rose to $3.86 billion in 2018, posting another year-over-year increase and extending a steady upward trend over the last five years. The company’s revenues were $2.86 billion and $3.3 billion in 2016 and 2017, respectively.
Founded in 1956 and headquartered in Eighty Four, PA, 84 Lumber Company is a privately held supplier of building materials, manufactured components and industry-leading services for single- and multi-family residences and commercial buildings.