Huttig Building Products, Inc. Announces Five-Year $250 Million Credit Facility
July 18 2017 - 4:45PM
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 $160 million senior secured credit facility. The
amendment, among other things, increases borrowing capacity from
$160 million to $250 million, reduces interest rate charges and
extends the facility for five years from the execution date, to
July 14, 2022. The amended facility may be increased to $300
million, through an uncommitted $50 million accordion feature,
subject to certain conditions. Wells Fargo Capital Finance, LLC
(Wells Fargo), Bank of America, N.A. (Bank of America) and JPMorgan
Chase Bank, N.A. (JPMorgan) are lenders under the facility.
“Our amended credit facility allows us to continue implementing
our investment strategy,” said Oscar A. Martinez, Huttig’s Vice
President and Chief Financial Officer. “While the facility did not
expire until 2019, the increased size and extended maturity
provides the capital structure flexibility to fuel our continued
growth. We are pleased to continue our relationship with Wells
Fargo, Bank of America and JPMorgan who have been valued lending
partners.”
Pricing for the amended facility is based on LIBOR plus 125 to
175 basis points, depending on levels of average borrowing
availability. Under the prior facility amendment, pricing was at
LIBOR plus 150 to 225 basis points.
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 133rd 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, 2016 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.
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