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84 Lumber positions for growth

Pro dealer has entered into a new term loan and credit facility while reducing interest.

BY HBSDealer Staff

84 Lumber Company reported that it has entered into a new 7-year $310 million senior secured term B loan along with a new 5-year $400 million asset-based revolving credit facility.

As a result, the nation’s largest privately-held pro dealer said it is firmly positioned for future growth.

The pro dealer said that the funding will be used to refinance a $307.5 million term loan and a $400 million credit revolver. The company also said that as a result of its refinancing, 84 Lumber now has no debt maturities prior to 2024.

According to 84 Lumber President Maggie Hardy Knox, the new term loan facility will reduce the dealer’s future annual cash interest by approximately $3 million, as well as extending the company’s debt maturity profile.

In a statement issued by the dealer, 84 Lumber said that it has “significantly outperformed the market” since its initial term loan facility in 2016.

With the new funding, 84 Lumber said that its financial performance will allow for future expansion.  The company also said that it plans to focus on increasing productivity through information technology systems and processes.

“I’m immensely proud of the performance of our company over the last three years. Our capital structure will continue to provide us the flexibility to opportunistically expand and build on our current and future successes. We have the right people and the necessary resources in place to take our company to the next level,” said Maggie Hardy Knox, president of 84 Lumber. “We continuously evaluate opportunistic transactions that not only lower our interest expense, but strengthen our balance sheet and improve cash flows.”

84 Lumber’s sales rose to $3.86 billion in 2018 compared to $3.3 billion in 2017. Sales for 2016 were $2.6 billion. The Eighty Four, Pa.-based privately held company said it expects to surpass revenue records in the coming years.

“We are taking this industry by storm. The future is bright at 84 Lumber and I will always support our hard-working and dedicated associates by investing in them and the company,” said Hardy Knox.

84 Lumber operates nearly 250 locations nationwide and has more than 5,600 for employees.

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