Installed Building Products, an installer of insulation products, refinanced its borrowings under its existing term loan and delayed draw term loan facilities, and closed its previously announced $300 million term loan B facility and $100 million ABL revolving credit facility.
The Royal Bank of Canada served as administrative agent for the term loan B facility, and RBC Capital Markets, UBS Securities and Jefferies Finance served as joint lead arrangers and joint bookrunners.
The $100 million ABL facility was led by a syndicate of financial institutions including SunTrust Bank as administrative agent. Other banks participating in the syndication were Key Bank, Regions Bank and US Bank.
The new $300 million term loan B facility matures in 2024 and has an interest rate of LIBOR plus 300 basis points with a LIBOR floor of 1%. The term loan B facility has no financial maintenance covenants and is rated BB by S&P Global Ratings and B1 by Moody’s Investors Service.
The new $100 million ABL facility has a five-year duration and an interest rate of LIBOR plus 125 – 175 basis points based on excess availability.
“I am pleased with the robust demand and favorable terms of our term loan B facility, reflecting our financial partners’ confidence in IBP’s compelling financial model and growth-oriented business plan,” stated Jeff Edwards, chairman and CEO. “The additional capital from the new $300 million facility extends IBP’s average weighted debt maturity and provides us with significant financial flexibility to continue achieving our established growth strategies.”
With the completion of the transaction, the company now has total indebtedness of approximately $369 million, comprised of the new, $300 million term loan, $56 million in equipment financing and $13 million in seller notes and non-competes. With approximately $100 million in cash, resulting in net total indebtedness of $269 million, IBP continues to have a conservative capital structure.