US LBM Holdings has amended its revolving credit facility. Royal Bank of Canada served as administrative agent for the transaction.
Among other items, the amended $275 million revolving credit facility:
- Reduces the interest rate spread on LIBOR rate by 25 basis points.
- Extends the term of the facility until October 2024.
- Expands the accordion feature from $50 million to $150 million, allowing the borrowing capacity to increase to $425 million, subject to certain conditions.
Borrowings under the five-year facility will bear interest at a rate of 125 to 175 basis points over LIBOR, compared to a prior range of 150 to 200 basis points. Also amended were certain reductions to fees related to undrawn amounts.
“Enhancing our credit facility further improves our borrowing costs and access to attractive capital resources,” said US LBM Executive Vice President and CFO Pat McGuiness. “The support of our banking partners, who value our strong fundamentals and unique position, is essential as we continue to profitably grow and expand our reach across the nation while delivering exceptional service and products to customers.”
The revolving credit facility was supported by a syndicate of six lenders, including Royal Bank of Canada as administrative agent. Other participants include Wells Fargo Bank; SunTrust Bank; U.S. Bank; Credit Suisse, Cayman Islands Branch; and Barclays Bank
Buffalo Grove, IL-based US LBM is a distributor of specialty building materials in the U.S.