COLUMBUS, Ohio--(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
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
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.
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, 614-221-9944
Source: Installed Building Products, Inc.
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