Millwork, building materials, and wood products distributor Huttig Building Products has entered into a new $250 million senior credit facility. The facility has a five-year tenure and can be expanded to $325 million through an uncommitted $75 million accordion, subject to certain conditions, according to the company. The new credit facility replaces Huttig’s existing credit facility.
“Our new credit facility will immediately provide us with increased financial flexibility as we continue to execute our strategy,” Phillip Keipp, vice president and CFO at Huttig, said in a prepared statement. “This agreement is reflective of our strong financial profile as we significantly strengthened our balance sheet in a challenging business environment over the past eighteen months.”
Pricing for the new credit facility is based on LIBOR plus 125 to 175 basis points, depending on levels of average availability. At closing, the initial pricing was LIBOR plus 125 basis points, according to Huttig.
St. Louis-based Huttig is a distributor of millwork, building materials, and wood products. The company distributes its products through 25 distribution centers serving 41 states. The company’s distribution centers sell principally to building materials dealers, national buying groups, home centers, and industrial users.
