Quanex Building Products Announces Debt Refinancing
August 01 2016 - 7:30AM
Quanex Building Products Corporation (NYSE: NX) (“Quanex” or the
“Company”) today announced that it has entered into new senior
secured credit facilities (the “New Senior Credit Facilities”) due
2021 totaling $450 million, comprised of a $300 million revolving
credit facility and a $150 million Term Loan A.
The New Senior Credit Facilities replace the Company’s existing
$310 million Term Loan B and $100 million Asset-Based Lending
facility. Borrowings under the New Senior Credit Facilities
will bear a tiered interest rate based on Quanex’s consolidated
leverage ratio and will initially be set at LIBOR plus 200 basis
points, reducing the Company’s current credit spread by
approximately 375 basis points. At the time of closing, there
were approximately $300 million of borrowings under the New Senior
Credit Facilities.
Brent Korb, Senior Vice President of Finance and Chief Financial
Officer, commented, “The New Senior Credit Facilities give us ample
flexibility and a capital structure that supports our business
requirements. In addition, the new capital structure
significantly reduces our annual interest expense. In fact,
based on current debt outstanding, the New Senior Credit Facilities
reduce the annual interest expense by approximately $13 million,
greater than a 60% reduction. Not only is this transaction
meaningfully accretive, it is also a reflection of the progress we
have made improving our leverage profile since the start of our
fiscal year, and demonstrates the confidence the lenders have in
our ability to execute on our long-term strategic plan.”
Wells Fargo Securities, LLC, and Merrill Lynch, Pierce, Fenner
& Smith Incorporated served as the Joint Lead Arrangers and
Joint Bookrunners for the New Senior Credit Facilities with Wells
Fargo Bank, National Association serving as Administrative
Agent.
About Quanex
Quanex Building Products Corporation is an industry-leading
manufacturer of components sold to Original Equipment Manufacturers
(OEMs) in the building products industry. Quanex designs and
produces energy-efficient fenestration products in addition to
kitchen and bath cabinet components.
Investor Contact: Scott Zuehlke, 713-877-5327, scott.zuehlke@quanex.com
Media Contact: Valerie Calvert, 713-877-5305, valerie.calvert@quanex.com
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