Limbach Holdings Closes on New Credit Facilities
February 25 2021 - 8:30AM
Business Wire
Limbach Holdings, Inc. (Nasdaq: LMB) (“Limbach” or the
“Company”), a provider of building infrastructure services, with an
expertise in the design, installation and maintenance of HVAC and
mechanical, electrical and plumbing systems for a diversified group
of commercial and institutional building owners, today announced
that it has entered into new credit agreements (the “Credit
Facilities”) led by Wintrust Financial Corporation (“Wintrust”),
together with a syndicate of commercial financial institutions. The
Credit Facilities consist of a $25.0 million revolving credit
facility (including a $5.0 million letter of credit sublimit)
(“Revolver”) and a $30.0 million term loan (“Term Loan”) which
together replaced its previous credit facilities.
“We’re pleased to have successfully completed the refinancing of
our senior credit facilities, accomplishing a key strategic
initiative of meaningfully reducing the Company’s cost of debt
capital. The terms of the Credit Facilities reflect our
substantially improved operating performance,” said Charlie Bacon,
President and CEO of Limbach. “The new Credit Facilities provide
for a total of up to $25.0 million of availability to fund the
Company’s working capital needs and potential additional debt
capacity to support our strategic growth plans. As a result of
significantly reduced interest rates and a lower overall level of
funded debt, the Company expects to realize approximately $4.0
million of reduced cash interest expense in fiscal 2021 compared to
fiscal 2020, based on our current forecast. After paying off
existing debt, we now have total funded indebtedness of $30.0
million under the Credit Facilities. At closing, no amounts were
funded under the Revolver. We appreciate the support of Wintrust
and the other syndicate members in structuring and funding the
Credit Facilities, and in partnering with Limbach as we look
forward.”
Under the terms of the Credit Facilities, the interest rate on
the Revolver is, at the Company’s option, LIBOR plus 3.5% or a base
rate plus 0.5%, and the interest rate on the Term Loan is, at the
Company’s option, LIBOR plus 4.0% or a base rate plus 1.0%, in each
case with a minimum LIBOR floor of 0.25% and base rate floor of
3.0%. Both the Revolver and the Term Loan feature a 50-75 basis
point reduction in applicable margin on achieving a senior leverage
ratio (as defined in the loan agreement) of less than 1.00:1. The
Term Loan will amortize $500,000 monthly starting March 31, 2021.
Additional details regarding the Credit Facilities can be found in
the Form 8-K filed today by the Company with the U.S. Securities
and Exchange Commission.
About Limbach
Limbach provides building infrastructure services, with an
expertise in the design, installation and maintenance of HVAC and
mechanical, electrical and plumbing systems for a diversified group
of commercial and institutional building owners. Limbach employs
more than 1,700 employees in 22 offices throughout the United
States. The Company’s full life-cycle capabilities, from concept
design and engineering through system commissioning and recurring
24/7 service and maintenance, position Limbach as a value-added and
essential partner for building owners, construction managers,
general contractors and energy service companies.
Forward-Looking
Statements
We make forward-looking statements in this press release within
the meaning of the Private Securities Litigation Reform Act of
1995. These forward-looking statements relate to expectations or
forecasts for future events, including, without limitation, the
execution of the Company’s long-term strategic roadmap and the
expected uses of the proceeds from the new credit agreement. These
statements may be preceded by, followed by or include the words
“may,” “might,” “will,” “will likely result,” “should,” “estimate,”
“plan,” “project,” “forecast,” “intend,” “expect,” “anticipate,”
“believe,” “seek,” “continue,” “target” or similar expressions.
These forward-looking statements are based on information available
to us as of the date they were made and involve a number of risks
and uncertainties which may cause them to turn out to be wrong.
Some of these risks and uncertainties may in the future be
amplified by the COVID-19 outbreak and there may be additional
risks that we consider immaterial or which are unknown.
Accordingly, forward-looking statements should not be relied upon
as representing our views as of any subsequent date, and we do not
undertake any obligation to update forward-looking statements to
reflect events or circumstances after the date they were made,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws. As a
result of a number of known and unknown risks and uncertainties,
our actual results or performance may be materially different from
those expressed or implied by these forward-looking statements.
Please refer to our most recent annual report on Form 10-K, as well
as our subsequent filings on Form 10-Q and Form 8-K, which are
available on the SEC’s website (www.sec.gov), for a full discussion of the risks
and other factors that may impact any forward-looking statements in
this press release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210225005317/en/
Investor Relations:
The Equity Group, Inc. Jeremy Hellman, CFA Vice President (212)
836-9626 / jhellman@equityny.com or
Limbach Holdings, Inc. S. Matthew Katz Executive Vice President
(212) 201-7006 / matt.katz@limbachinc.com
Limbach (NASDAQ:LMB)
Historical Stock Chart
From Mar 2024 to Apr 2024
Limbach (NASDAQ:LMB)
Historical Stock Chart
From Apr 2023 to Apr 2024