Huttig Building Products, Inc. Extends $120 Million Credit Facility
December 21 2012 - 4:23PM
Marketwired
Huttig Building Products, Inc. (OTCQB: HBPI), a leading domestic
distributor of millwork, building materials and wood products,
today announced it has entered into an agreement to amend and
extend its $120 million senior secured credit facility. The
amendment, among other things, extends the facility for five years
from the execution date, to December 21, 2017. The amended facility
can be increased to $160 million, through an uncommitted $40
million accordion feature, subject to certain conditions. General
Electric Capital Corporation (GECC) and Wells Fargo Capital
Finance, LLC (Wells Fargo) are co-lenders under the facility.
Philip W. Keipp, Huttig's Vice President and Chief Financial
Officer, said, "While our existing credit agreement did not expire
until September 2014 we believe that the current lending market,
along with our improved financial performance, provides an
opportunity to secure a long-term agreement which works very well
for the Company. We are pleased to continue our relationship with
GECC and Wells Fargo who have been valued lending partners."
Pricing for the amended facility is based on LIBOR plus 225 to
275 basis points, depending on levels of average availability.
Under the prior facility, executed in September 2010, pricing was
at LIBOR plus 225 to 300 basis points. At closing, the initial
pricing is LIBOR plus 250 basis points. In addition, among other
things, the amended facility provides for certain changes to the
borrowing base, permitted acquisition, and cash dominion provisions
of the agreement.
"The amended credit facility will provide the Company with
additional borrowing capacity and bring increased financial
flexibility. We believe the agreement is an endorsement of the
Company's proven ability to manage through a challenging market
environment while putting itself in position to take advantage of
growth opportunities presented by an improving housing market.
Executing the facility allows us to remain focused on meeting
market challenges and growing our business while mitigating lending
risks which may be brought by any general economic or political
uncertainty," said Mr. Keipp.
Further details concerning the amendment are contained in the
Company's Current Report on Form 8-K which has been filed with the
Securities and Exchange Commission.
About Huttig Building Products, Inc.
Huttig Building Products, founded in 1885 and headquartered in
St. Louis, MO, is a leading domestic distributor of millwork,
building materials and wood products used principally in new
residential construction and home improvement, remodeling and
repair work. Huttig has relationships with leading manufacturers
and distributes its products through 27 wholesale distribution
centers serving 41 states. The Company's wholesale distribution
centers sell principally to building materials dealers, national
buying groups, home centers, and industrial users, including makers
of manufactured homes.
Forward Looking Statements
This press release includes "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including statements relating to our outlook on the housing
industry. All of these forward-looking statements are based on
estimates and assumptions made by our management that, although
believed by Huttig Building Products, Inc. to be reasonable, are
inherently uncertain. Forward-looking statements involve risks and
uncertainties, including, but not limited to, economic,
competitive, governmental and technological factors outside of
Huttig Building Products, Inc.'s control that may cause its
business, strategy or actual results to differ materially from the
forward-looking statements. These risks and uncertainties are
described in the "Risk Factors" section in the Company's Annual
Report on Form 10-K for the year ended December 31, 2011 and in its
periodic reports filed with the Securities and Exchange Commission
from time to time. Given these risks and uncertainties, you are
cautioned not to place undue reliance on forward-looking
statements. Huttig Building Products, Inc. undertakes no obligation
to publicly update or revise any forward-looking statement as a
result of new information, future events, changes in expectation or
otherwise, except as required by law.
For more information about Huttig, please visit www.huttig.com
or Don Hake at investor@huttig.com.
Don Hake investor@huttig.com
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