Huttig Building Products, Inc. Amends and Extends Credit Facility -- Increases Capacity to $160 Million
May 29 2014 - 6:00AM
Marketwired
Huttig Building Products, Inc. Amends and Extends Credit Facility
-- Increases Capacity to $160 Million
ST. LOUIS, MO--(Marketwired - May 29, 2014) - Huttig Building
Products, Inc. (NASDAQ: HBP), 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,
increases borrowing capacity from $120 million to $160 million,
reduces interest rate charges and extends the facility for five
years from the execution date, to May 28, 2019. The amended
facility may be increased to $200 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 December 2017 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 150 to
225 basis points, depending on levels of average borrowing
availability. Under the prior facility, executed in December
2012, pricing was at LIBOR plus 225 to 275 basis points. At
closing, the initial pricing is LIBOR plus 200 basis
points. Index pricing was also reduced.
"We believe the amended facility will enhance our financial
flexibility and provide greater liquidity to support our business
growth," 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
Huttig Building Products, Inc., currently in its 130th year of
business, is one of the largest domestic distributors of millwork,
building materials and wood products used principally in new
residential construction and in home improvement, remodeling and
repair work. Huttig distributes its products through 27
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 contains forward-looking information as
defined by the Private Securities Litigation Reform Act of 1995.
This information presents management's expectations, beliefs, plans
and objectives regarding future financial performance, and
assumptions or judgments concerning such performance. Any
discussions contained in this press release, except to the extent
that they contain historical facts, are forward-looking and
accordingly involve estimates, assumptions, judgments and
uncertainties. There are known and unknown factors that could cause
actual results or outcomes to differ materially from those
addressed in the forward-looking information. Such known factors
are detailed in the Company's Annual Report on Form 10-K for the
year ended December 31, 2013 filed with the Securities and Exchange
Commission and in other reports filed by the Company with the
Securities and Exchange Commission from time to time.
For more information about Huttig, please visit www.huttig.com
or contact Don Hake at investor@huttig.com.
Contact Don Hake investor@huttig.com
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