Installed Building Products, an installer of insulation and complementary building products, closed a seven-year, $500 million term loan with RBC Capital Markets, BofA Securities and Goldman Sachs Bank.

Royal Bank of Canada will serve as term administrative agent and term collateral agent for the new term loan. RBC Capital Markets, BofA Securities and Goldman Sachs Bank served as joint lead arrangers and joint bookrunners, while Loop Capital Markets, U.S. Bank, KeyBanc Capital Markets and PNC Capital Markets served as co-managers for the new term loan.

The new term loan facility matures on Dec. 13, 2028. It has no financial maintenance covenants and is rated BB+ by S&P Global Ratings and Ba2 by Moody’s Investors Service. Moody’s also upgraded Installed Building Products’  corporate family rating to Ba2 from Ba3 and its probability of default rating to Ba2-PD from Ba3-PD. The pricing of the new term loan remains at LIBOR plus 225 basis points with a LIBOR floor of 50 basis points.

Installed Building Products used some of the proceeds of the new term loan to refinance its prior $200 million term loan B. It will use the remainder of the proceeds for acquisitions, other growth initiatives and general corporate purposes.