Gibraltar Industries to Redeem Senior Subordinated 6.25% Notes
December 20 2018 - 8:30AM
Business Wire
Repayment of $210 Million of Fixed Rate Debt to
Save $13 Million in Annual Interest Payments
Company Maintains Access to Capital to Execute
on Four-Pillar Strategy
Gibraltar Industries, Inc. (Nasdaq: ROCK), a leading
manufacturer and distributor of building products for the
residential, industrial, infrastructure, and renewable energy and
conservation markets, today announced that as a result of its
strong balance sheet, the Company will redeem all of its Senior
Subordinated 6.25% Notes, which are due February 1, 2021. Gibraltar
anticipates annualized savings of $13 million in interest payments
from the repayment of the Notes, which will occur on February 1,
2019. On a pro forma basis, the reduced interest expense will
result in a $0.24 increase to diluted earnings per share
annually.
In addition, the Company is negotiating an amendment of its
revolving credit facility to increase the amount of credit
available to the Company and provide additional flexibility with
respect to its borrowings under this facility. The Company expects
to complete the amendment to its credit facility in January 2019.
There are no amounts currently outstanding under its revolving
credit facility and the Company plans to repay the Notes with cash
on hand without any need to borrow against the facility.
“Our strong balance sheet and cash flow enables us to complete
the early repayment of our 6.25% Notes and generate significant
annual savings,” said President and CEO Frank Heard. “With the
repayment of our notes and the amendment to our credit facility, we
will maintain access to capital to continue pursuing strategic
acquisitions in target markets while securing significant cash
interest savings.”
About GibraltarGibraltar Industries is a leading
manufacturer and distributor of building products for the
residential, industrial, infrastructure, and renewable energy and
conservation markets. With a four-pillar strategy focused on
operational improvement, product innovation, portfolio management
and acquisitions, Gibraltar’s mission is to drive best-in-class
performance. Gibraltar serves customers primarily throughout North
America and to a lesser extent Asia. Comprehensive information
about Gibraltar can be found on its website at
www.gibraltar1.com.
Safe Harbor StatementInformation contained in this news
release, other than historical information, contains
forward-looking statements and is subject to a number of risk
factors, uncertainties, and assumptions. Risk factors that could
affect these statements include, but are not limited to, the
following: the availability of raw materials and the effects of
changing raw material prices on the Company’s results of
operations; energy prices and usage; changing demand for the
Company’s products and services; changes in the liquidity of the
capital and credit markets; risks associated with the integration
and performance of acquisitions; and changes in interest and tax
rates. In addition, such forward-looking statements could also be
affected by general industry and market conditions, as well as
macroeconomic factors including government monetary and trade
policies, such as tariffs and expiration of tax credits along with
currency fluctuations and general political conditions. Other risks
and uncertainties that arise from time to time are described in
Item 1A “Risk Factors” of the Company’s Annual Report on Form 10-K.
The Company undertakes no obligation to update any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as may be required by applicable law or
regulation.
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version on businesswire.com: https://www.businesswire.com/news/home/20181220005387/en/
Timothy MurphyChief Financial Officer716-826-6500 ext.
3277tfmurphy@gibraltar1.com
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