Tecnoglass Upsizes Revolving Credit Facility and Extends Maturity Date to 2026
November 15 2021 - 7:00AM
Tecnoglass, Inc.
(NASDAQ:
TGLS) ("Tecnoglass" or the
"Company"),
a leading manufacturer
of architectural glass, windows, and associated aluminum products
for the global residential and commercial construction industries,
today announced it has amended its senior secured revolving credit
facility to (i) increase the borrowing capacity under its committed
Line of credit from $50 million to $150 million , (ii) reduce its
borrowing costs by an approximate 130 basis points, and (iii)
extend the initial maturity date by one year to the end of 2026.
Borrowings under the credit facility will now bear interest at a
rate of LIBOR with no floor plus a spread of 1.75%, based on the
Company’s net leverage ratio, compared to a prior rate of LIBOR
with a floor of 0.75% plus a spread of 2.50%. The company expects
the amendments to provide approximately $3 million of incremental
interest expense savings on an annual basis at current outstanding
borrowings.
Santiago Giraldo, Tecnoglass Chief Financial
Officer, stated, “We’re extremely proud of our outstanding track
record of financial performance and cash generation. Today’s
announcement further demonstrates to our customers, employees,
partners and shareholders that our business momentum is very strong
and our growth investments are paying off. This transaction, which
was widely oversubscribed, reduces our cost of capital while
significantly enhancing our liquidity and financial flexibility.
Through this refinancing, we now estimate total annual savings of
approximately $15 million at current levels of outstanding
borrowings, since entering into our inaugural US Bank syndicated
facility in October of 2020. This upsized revolver positions us
exceptionally well to fund future growth initiatives and to further
capitalize on opportunities in the quarters and years ahead. We are
extremely encouraged by the overwhelming support received by the
syndicate of US and European based banks that understood the strong
tailwinds in our business as well as our structural competitive
advantages that are allowing us to outpace the industry and gain
incremental market share. The syndicate composition and the
financial costs achieved in this transaction validate the success
of our strategy as a ‘US centric’ company.”
The facility was led by PNC Bank N.A as
Administrative Agent; with Citizens Bank N.A, BBVA USA, CIT Bank
and Wells Fargo Bank N.A serving as Joint Lead Arrangers.
About Tecnoglass
Tecnoglass Inc. is a leading producer of
architectural glass, windows, and associated aluminum products
serving the multi-family, single-family and commercial end markets.
Tecnoglass is the second largest glass fabricator serving the U.S.
and the #1 architectural glass transformation company in Latin
America. Located in Barranquilla, Colombia, the Company’s 2.7
million square foot, vertically-integrated and state-of-the-art
manufacturing complex provides efficient access to over 1,000
global customers, with the U.S. accounting for more than 90% of
revenues. Tecnoglass' tailored, high-end products are found on some
of the world's most distinctive properties, including One Thousand
Museum (Miami), Paramount (Miami), Salesforce Tower (San
Francisco), Via 57 West (NY), Hub50House (Boston), Aeropuerto
Internacional El Dorado (Bogotá), One Plaza (Medellín), Pabellon de
Cristal (Barranquilla). 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.
Investor Relations:
Santiago
GiraldoCFO305-503-9062investorrelations@tecnoglass.com
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