Installed Building Products Reprices Term Loan B Facility with Royal Bank of Canada

Installed Building Products, an installer of insulation and complementary building products, repriced its $500 million term loan entered into, according to a related 8-K filing, with Royal Bank of Canada as term administrative agent. IBP repurchased 250,000 shares of its common stock at a total cost of approximately $52 million, including commissions. To date in 2024, the company has repurchased 565 thousand shares for $118 million with approximately $182 million remaining under the current authorization, expiring March 1, 2025._x000D_
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The term loan maturity date of March 28, 2031 is unchanged and bears interest at the adjusted term secured overnight financing rate plus 1.75% per annum (down from the previous 2.00%), or an alternative base rate plus 0.75%. The term loan is rated BB+ by S&P Global Ratings and Ba1 by Moody’s Investors Service._x000D_
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“The term loan repricing will provide IBP with over $1 million in estimated cash interest expense savings annually,” Michael Miller, chief financial officer, said. “IBP’s continued strong operating and financial performance and current market conditions have supported the opportunity to reduce our cost of borrowing and return capital to shareholders through share buybacks.”_x000D_
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RBC Capital Markets acted as lead left arranger and bookrunner and BofA Securities, KeyBanc Capital Markets, US Bancorp and PNC Capital Markets acted as joint lead arrangers and bookrunning managers for the term loan.