Tecnoglass Announces New $300 Million Credit Facility
Tecnoglass, Inc. (NASDAQ: TGLS) (“Tecnoglass” or the “Company”), a
leading manufacturer of architectural glass, windows, and
associated aluminum products for the global commercial and
residential construction industries, today announced it has entered
into a new $300 million Senior Secured Credit Facility (“Credit
Facility”), consisting of a $250 million delayed draw term loan and
a $50 million committed revolving credit facility, with a maturity
date in 2025. The Credit Facility has an accordion feature allowing
the Company to increase the borrowing capacity to $325 million. The
Credit Facility will bear interest at a rate of LIBOR, with a 0.75%
floor, plus a spread of between 2.50% and 3.50%, based on the
Company’s net leverage ratio. Under the terms of the agreement, the
facility will have an initial interest rate spread of 3.00%, which
the Company expects to decrease to a spread of 2.75% in April 2021.
The Company intends to use the net proceeds to
repay all outstanding borrowings under its previous credit
facilities. The Company’s existing $210 million unsecured senior
notes, which bear interest at a rate of 8.2% and mature in 2022,
are expected to be redeemed in full following a step down in
redemption price at the end of January 2021. The Company plans to
use the remaining proceeds and available cash for ongoing working
capital needs and general corporate purposes.
Santiago Giraldo, Tecnoglass Chief Financial
Officer, stated, “This larger facility, with its improved pricing
and flexibility, is supported by a very strong syndication of U.S.
and European based lenders who underwrote this agreement with a
clear recognition of Tecnoglass as a solid U.S.-focused company.
The significantly improved terms of the facility underscore our
record of growth, our improved cash generation, and our greater
than 90% of revenues derived from the U.S. We believe the
significant reduction of our cost of capital, including anticipated
annual cash interest savings of approximately $11 million on
current outstanding borrowings, positions us exceptionally well to
fund growth initiatives and to further capitalize on market
opportunities. We thank all of our new and existing lenders for
their continued support of our industry-leading margin
BBVA USA acted as Administrative Agent, with
Citizens Bank, N.A., ING Bank N.V., and Sabadell Bank acting as
Joint Lead Arrangers for the Credit Facility.
Separately, the Company completed the
previously-disclosed purchase of a land parcel, which will be
contributed to its Vidrio Andino joint venture with Saint-Gobain to
be used for the construction of a new float glass manufacturing
facility located near Barranquilla. The land transaction was
completed on October 28, 2020 for a purchase price of $10.9 million
in aggregate value, paid in Tecnoglass ordinary shares issued at a
price of $7.00 per share, which represents an approximate 33%
premium based on the stock price as of the closing date of October
Tecnoglass Inc. is a leading manufacturer of
architectural glass, windows, and associated aluminum products for
the global commercial and residential construction industries.
Tecnoglass is the #1 architectural glass transformation company in
Latin America and the second largest glass fabricator serving the
United States. Headquartered in Barranquilla, Colombia, the Company
operates out of a 2.7 million square foot vertically-integrated,
state- of-the-art manufacturing complex that provides easy access
to the Americas, the Caribbean, and the Pacific. Tecnoglass
supplies over 1000 customers in North, Central and South America,
with the United States accounting for more than 80% of revenues.
Tecnoglass’ tailored, high-end products are found on some of the
world’s most distinctive properties, including the El Dorado
Airport (Bogota), 50 United Nations Plaza (New York), Trump Plaza
(Panama), Icon Bay (Miami), and Salesforce Tower (San Francisco).
For more information, please visit www.tecnoglass.com or view our
corporate video at https://vimeo.com/134429998.
Forward Looking Statements
This press release includes certain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995, including statements
regarding future financial performance, future growth and future
acquisitions. These statements are based on Tecnoglass’ current
expectations or beliefs and are subject to uncertainty and changes
in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in
economic, business, competitive and/or regulatory factors, and
other risks and uncertainties affecting the operation of
Tecnoglass’ business. These risks, uncertainties and contingencies
are indicated from time to time in Tecnoglass’ filings with the
Securities and Exchange Commission. The information set forth
herein should be read in light of such risks. Further, investors
should keep in mind that Tecnoglass’ financial results in any
particular period may not be indicative of future results.
Tecnoglass is under no obligation to, and expressly disclaims any
obligation to, update or alter its forward-looking statements,
whether as a result of new information, future events and changes
in assumptions or otherwise, except as required by law.
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