Kevin Oâ€™Meara, who resigned as president and COO of Builders FirstSource on Oct. 29, has agreed to serve as a consultant to the company for a two-year period, according to a filing with the Securities and Exchange Commission. In exchange, Oâ€™Meara will receive 89,334 shares of restricted stock, which will vest at the end of the two-year period.
The Builders FirstSource co-founder has also agreed not to work for a Builders FirstSource competitor, solicit business from any of the companyâ€™s customers or attempt to hire any Builder FirstSource employees for the next two years.
Oâ€™Mearaâ€™s separation agreement, outlined in the SEC document, will pay the 10-year company veteran $810,000, equal to two years of his base salary, in 52 installments. He is also entitled to receive $500,203, the average of his bonuses for the last two years, in June 2008.
In other company news, Builders FirstSource has entered into a new $350 million revolving credit facility with Wachovia Capital Markets and UBS Investment Bank. General Electric Capital will also participate in the lending consortium.
"We believe this credit facility further enhances our liquidity and will enable us to better manage our business through the difficult housing environment. Our current borrowing capacity under the agreement is approximately $150 million, which coupled with our cash on hand, provides over $250 million of liquidity," said Floyd Sherman, the companyâ€™s CEO.
The $350 million revolving credit line will be available for working capital and general corporate purposes.
Headquartered in Dallas, Builders FirstSource is a lumber and building materials distributor with locations in 13 states, principally in the southern and eastern United States.