Installed Building Products Announces Successful Refinancing
17 April 2017 - 9:00PM
Business Wire
Installed Building Products, Inc. (the “Company”) (NYSE: IBP),
an industry-leading installer of insulation products, announced
today that the Company has successfully 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 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 one percent. 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 Revolving Credit 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 Chief Executive Officer.
“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, IBP 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.
The Royal Bank of Canada served as Administrative Agent for the
Term Loan B facility, and RBC Capital Markets, UBS Securities LLC,
and Jefferies Finance LLC, served as Joint Lead Arrangers and Joint
Bookrunners.
The $100 million ABL Revolving Credit 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.
Additional details on the credit facilities may be found in the
Form 8-K filed today with the Securities and Exchange
Commission.
About Installed Building Products
Installed Building Products, Inc. is the nation's second largest
insulation installer for the residential new construction market
and also a diversified installer of complementary building
products, including garage doors, rain gutters, shower doors,
closet shelving and mirrors, throughout the United States. The
Company manages all aspects of the installation process for its
customers, including direct purchases of materials from national
manufacturers, supply of materials to job sites and quality
installation. The Company offers its diverse portfolio of services
for new and existing single-family and multifamily residential, and
commercial building projects from its national network of branch
locations.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the federal securities laws, including with respect
to our financial model and flexibility, demand for our services,
expansion of our national footprint, our ability to capitalize on
the new home construction recovery, our ability to strengthen our
market position, our ability to pursue value-enhancing
acquisitions, our ability to improve profitability and expectations
for demand for our services for the remainder of 2017.
Forward-looking statements may generally be identified by the use
of words such as "anticipate," "believe," "expect," "intends,"
"plan," and "will" or, in each case, their negative, or other
variations or comparable terminology. These forward-looking
statements include all matters that are not historical facts. By
their nature, forward-looking statements involve risks and
uncertainties because they relate to events and depend on
circumstances that may or may not occur in the future. Any
forward-looking statements that we make herein and in any future
reports and statements are not guarantees of future performance,
and actual results may differ materially from those expressed in or
suggested by such forward-looking statements as a result of various
factors, including, without limitation, the factors discussed in
the “Risk Factors” section of the Company’s Annual Report on Form
10-K for the year ended December 31, 2016, as the same may be
updated from time to time in our subsequent filings with the
Securities and Exchange Commission. Any forward-looking statement
made by the Company in this press release speaks only as of the
date hereof. New risks and uncertainties arise from time to time,
and it is impossible for the Company to predict these events or how
they may affect it. The Company has no obligation, and does not
intend, to update any forward-looking statements after the date
hereof, except as required by federal securities laws.
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Installed Building Products, Inc.Investor Relations,
614-221-9944investorrelations@installed.net
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