Builders FirstSource amends credit facility
Builders FirstSource has announced the amendment of a 2007 senior secured revolving credit facility that will increase the pro dealer’s borrowing capabilities while reducing its commitment fees.
Commenting on the transaction, Builders FirstSource senior VP CFO Chad Crow said, “We could not be more pleased with this amendment and the willingness of our bank group, led by Wells Fargo Bank, to partner with us in getting this done. This amendment provides us with up to $25.0 million of additional borrowing availability by reducing our minimum liquidity requirement, and also reduces the maximum borrowing capacity under the facility from $250 million to $150 million.”
The change will lower the Dallas-based company’s annual interest expense related to commitment fees by approximately $0.4 million, Crow said. “This is a significant improvement to our overall liquidity and should not limit our future borrowing capacity as we do not anticipate our borrowing base will support borrowings in excess of $150 million prior to the expiration of the facility in December 2012,” he added.
The new loan package has certain restrictive covenants, including a fixed charge coverage ratio of 1:1 that, prior to the amendment, was triggered if Builders FirstSource’s excess availability, as determined under the borrowing base formula, fell below a minimum liquidity requirement of $35 million. Under the terms of the new amendment, the minimum liquidity requirement was reduced and will now be determined on a sliding scale based on the company’s average gross availability, as outlined in a Securities and Exchange Commission filing.
Builders FirstSource operates in nine states, principally in the southern and eastern United States, and has 53 distribution centers and 47 manufacturing facilities, many of which are located on the same site. Manufacturing facilities include floor trusses, wall panels, stairs, aluminum and vinyl windows, custom millwork and pre-hung doors.
Sellars new VP for Cash Acme and SharkBite Products
Paul Sellars has been named VP sales for Reliance Worldwide USA, manufacturers and distributors of Cash Acme and SharkBite-branded products.
Prior to joining Reliance, Sellars served as director of sales for Rinnai America Corp., with previous positions at State Industries, Jacuzzi Whirlpool Bath and Kohler Co.
Floor & Decor acquired by private equity firms
Floor and Decor Outlets of America, a chain of floor covering retail outlets, has signed an agreement to be purchased by an affiliate of Ares Management and Freeman Spogli & Co. from an investor group that includes Najeti Ventures, Saugatuck Capital Co. and TWJ Capital.
Headquartered in Atlanta, Floor and Decor currently sells ceramic, stone, wood and laminate flooring through 25 stores in 15 U.S. metro markets, as well as through its website, flooranddecoroutlets. Its brick-and-mortar locations typically range from 60,000 sq. ft. to 80,000 sq. ft. and are set in warehouse-style buildings with merchandise stacked on pallets. Customers are primarily homeowners and professional contractors.
Based in Los Angeles, Ares Management is also an investor in Orchard Supply Hardware, a chain of home improvement stores throughout California.