Specialty building materials distributor US LBM has amended its revolving credit facility. Among other items, the amended $275 million revolving credit facility reduces the interest rate spread on Long Interbank Offered Rate (LIBOR) by 0.25%, extends the term of the facility until October 2024, and expands the accordion feature from $50 million to $150 million, allowing for borrowing capacity to increase to $425 million.
“Enhancing our credit facility further improves our borrowing costs and access to attractive capital resources,” US LBM executive vice president and CFO Pat McGuiness said in a public statement. “The support of our banking partners, who value our strong fundamentals and unique position, is essential as we continue to profitably grow and expand our reach across the nation while delivering exceptional service and products to customers.”
Borrowing under the five-year facility will bear interest at a rate of 1.25% to 1.75% over LIBOR, compared to the prior range of 1.5% to 2.0%. Certain reductions to fees related to undrawn amounts were also amended, according to US LBM.
The revolving credit facility was supported by a syndicate of six lenders, including Wells Fargo Bank, SunTrust Bank, US Bank, Credit Suisse AG, Barclays Bank PLS, and the Royal Bank of Canada as an administrative agent.
Buffalo Grove, Ill.-based US LBM ranked as the 6th largest company on the 2019 ProSales 100.
