North American manufacturer and distributor Associated Materials closed a series of previously announced recapitalization transactions to de-lever its balance sheet and enhance its liquidity position. As part of the transactions, Associated Materials and AMH New Finance issued $250.0 million 9% senior secured notes due 2025. The proceeds of the notes are being used to provide liquidity on Associated Materials’ balance sheet, to pay down the existing balance of its asset-based loan facility, and to pay fees and expenses in connection with the recapitalization transactions.
In conjunction with the recapitalization transactions, Associated Materials also amended its asset-based loan facility commitment to $150 million and extended its maturity to 2024.
Associated Materials said the transactions have substantially reduced the company’s net leverage to around two times its adjusted EBITDA for the twelve months ended fiscal June 2020 and have expanded the company’s total liquidity to in excess of $200 million.
“We look forward to operating our business under this improved capital structure and are grateful for the support of all stakeholders throughout the process,” Brian Strauss, president and CEO of Associated Materials, said in a news release. “Our new capital structure will better support our strong operating business and set the company up for long-term success.”
Cuyahoga Falls, Ohio-based Associated Materials operates 11 manufacturing facilities in the United States and Canada which produce vinyl windows, vinyl siding and accessories, and metal building products. The company, which generates over $1.3 billion in annual sales, also operates 122 supply centers under the Alside and Gentek brands.
