Using the phrase “significant milestone” to describe the news, Peabody, Mass.-based Beacon Roofing Supply entered a new five-year senior-secured credit facility consisting of a $550 million credit facility with Wells Fargo Bank.
The deal also includes a C$15 million Canadian credit facility.
The deal refinanced the Company’s prior combined $515 million credit facilities that were provided through GE Antares and an affiliate.
David Grace, the company's executive VP & CFO, said: "We are very pleased to enter into this new arrangement with Wells Fargo, who understands our business and our unique position in the industry. The new credit facility provides attractive LIBOR margin pricing, reasonable financial covenants, and substantial liquidity and financial flexibility to aggressively pursue acquisitions and grow our company. The timing for us to refinance was ideal because interest rates are at historical low levels. There also was a very high level of interest from lenders because of our successful history of growth and profitability. This credit facility is a significant milestone in Beacon’s history."
Borrowings under the credit facility bear interest at a rate equal to LIBOR plus a margin. Such margin is initially 1.75% per year, and can range from 1.50% to 2.50% per year depending upon the company’s total leverage ratio.