Beacon Elects to Draw Down on Revolving Credit Facility to Further Strengthen Cash Position
April 01 2020 - 5:15PM
Business Wire
Beacon (Nasdaq:BECN) (the “Company”) announced today that it
elected to draw down approximately $725 million from its revolving
credit facility. This is a proactive measure to increase the
Company's cash position and preserve financial flexibility in light
of current uncertainty in the global markets resulting from the
COVID-19 pandemic. The funds will supplement the Company's cash
position. Details of the draw are described in the Company’s Form
8-K filed concurrently herewith. After the draw, Beacon will
maintain approximately $185 million of additional capacity on its
revolver.
“The health and safety of our employees, customers and
communities remains our foremost priority during this most unusual
period,” said Julian Francis, Beacon’s President and Chief
Executive Officer. “It is also our obligation to be good stewards
of the company’s financial assets. Our outstanding credit facility
provides Beacon considerable financial flexibility to manage our
balance sheet, and our draw on our ABL revolver exemplifies this.
Even though our business has been deemed essential everywhere we
operate and we remain open to serve our customers in all 50 states
and Canada, we thought it prudent to have additional cash on hand
in the event that we experience a material downturn in overall
business operations as a result of the COVID-19 pandemic. The ABL
draw that we are announcing today is just one of the many levers
available to Beacon to help us ensure that we will be able to meet
our long-term goals for our employees, customers and
shareholders.”
Forward-Looking Statements
This release contains information about management's view of the
Company's future expectations, plans and prospects that constitute
forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform Act of
1995. Actual results may differ materially from those indicated by
such forward-looking statements as a result of various important
factors, including, but not limited to, the impact of the COVID‑19
pandemic on the construction sector, in general, and the financial
position and operating results of our Company, in particular, which
cannot be predicted and could change rapidly, and those set forth
in the "Risk Factors" section of the Company's latest Form 10-K. In
addition, the forward-looking statements included in this press
release represent the Company's views as of the date of this press
release and these views could change. However, while the Company
may elect to update these forward-looking statements at some point,
the Company specifically disclaims any obligation to do so, other
than as required by federal securities laws. These forward-looking
statements should not be relied upon as representing the Company's
views as of any date subsequent to the date of this press
release.
About Beacon
Founded in 1928, Beacon is a Fortune 500, publicly-traded
distributor of residential and commercial building products in
North America, operating over 500 branches throughout all 50 states
in the U.S. and 6 provinces in Canada. Beacon serves an extensive
base of over 110,000 customers, utilizing its vast branch network
and diverse service offerings to provide high-quality products and
support throughout the entire business lifecycle. Beacon offers its
own private label brand, TRI-BUILT, and has a proprietary digital
account management suite, Beacon Pro+, which allows customers to
manage their businesses online. Beacon’s stock is traded on the
Nasdaq Global Select Market under the ticker symbol BECN. To learn
more about Beacon, please visit www.becn.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20200401005777/en/
Joseph Nowicki, Executive VP & CFO Joseph.Nowicki@becn.com
571-323-3939
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