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KeyBank Agents Installed Building Products’ New $325MM Facility

March 01, 2016, 07:51 AM
Filed Under: Building Supplies

Installed Building Products, Inc., an industry-leading installer of insulation products, announced it has entered into a new five-year, $325 million senior secured credit facility with an accordion feature allowing the Company to increase the borrowing capacity to $400 million, subject to certain approvals. The credit facility consists of a $100 million revolving line of credit, a $100 million term loan, and a $125 million delayed draw term loan facility.

The credit facility was led by a syndicate of financial institutions including KeyBank National Association as lead arranger, sole book runner and administrative agent, SunTrust Bank and US Bank, both served as the joint lead arranger, Regions Bank as the syndication agent and RBC as the documentation agent. Other banks participating in the syndication were BB&T, Associated Bank, Huntington, Citizens, Synovus and First Merchants.

Borrowings under the senior credit facility will bear interest at a rate of LIBOR plus a spread of 1.5% to 2.5%, depending on IBP's leverage ratio. The new credit facility will be available for general corporate purposes and growth initiatives. This new credit facility replaces the prior $100 million revolving line of credit, $50 million term loan, and $50 million delayed draw term loan facility.

"With nothing drawn on the $100 Million revolver and $125 million delayed draw term loan, this new credit facility further improves our financial flexibility as we continue to capitalize on the new home construction recovery and pursue select acquisitions in our target markets," stated Michael Miller, IBP's Chief Financial Officer. “We are pleased with the terms of this facility and encouraged by the continued strong support from our lenders in completing this transaction."

Installed Building Products, Inc. is the nation's second largest insulation installer for the residential new construction market and is also a diversified installer of complementary building products, including garage doors, rain gutters, shower doors, closet shelving and mirrors, throughout the United States. The Company manages all aspects of the installation process for its customers, including direct purchases of materials from national manufacturers, supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects from its national network of branch locations.

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