Bath and kitchen product manufacturer American Woodmark replaced its existing revolving credit facility with new facilities agented by Wells Fargo Securities. These included a $100 million, five-year revolving loan facility, a $250 million, five-year initial term loan facility and a $250 million delayed draw term loan facility that is available until March 31, 2018.
American Woodmark borrowed the entire $250 million available under the initial term loan facility and approximately $50 million under the revolver to fund, in part, its acquisition of RSI Home Products.
Under the terms of the new delayed draw term loan facility, any borrowing of the loans must be used to fund, in part, a refinancing of RSI’s existing 6.05% senior secured second lien notes due 2023. If not drawn for such purpose prior to March 31, 2018, those particular loans will no longer be available.
The new credit facilities are guaranteed by each of American Woodmark’s subsidiaries, other than RSI, with the obligations secured by a pledge of substantially all the company’s personal property assets, including a pledge by American Woodmark of the stock of each of its direct subsidiaries.
