PEABODY, Mass.--(BUSINESS WIRE)--Nov. 2, 2006--Beacon Roofing
Supply, Inc. (Nasdaq: BECN) ("Beacon" or the "Company") announced
today that it has entered into a new, seven-year $500 million U.S.
senior secured credit facility and a C$15 million senior secured
Canadian credit facility with GE Antares Capital ("GE Antares") and a
syndicate of other lenders (combined, the "Credit Facility"). The
Credit Facility refinanced the Company's prior $360 million credit
facilities that also were provided through GE Antares. GE Capital
Markets, Inc., served as the sole lead arranger and bookrunner on the
new facility, which provides the Company with lower interest rates and
readily available funds for future acquisitions and ongoing working
capital requirements.
The Credit Facility consists of a U.S. revolving credit facility
of $150 million (the "US Revolver"), which includes a sub-facility of
$20 million for letters of credit, and a $350 million term loan (the
"Term Loan"). The Term Loan has required amortization of 1% per year,
payable in quarterly installments, and the remainder is due in 2013.
The Credit Facility also includes a C$15 million senior secured
revolving credit facility provided by GE Canada Finance Holding
Company. The Company may also expand the Credit Facility by up to an
additional $200 million under certain conditions.
The US Revolver carries an interest rate of LIBOR plus 1% and the
Term Loan carries an interest rate of LIBOR plus 2%. Unused fees on
the revolving credit facilities are 0.25%. Availability under the
revolving credit facilities is limited to 85% of eligible accounts
receivable, increasing to 90% from January through April of each year.
Financial covenants, which apply only to the Term Loan, are limited to
a leverage ratio and a yearly capital expenditure limitation.
David Grace, the Company's Senior Vice-President & Chief Financial
Officer, stated, "We are very pleased to continue and expand our
productive relationship with GE Antares, which understands our
business and our unique position in the roofing and other building
products industry. This new credit facility provides the Company with
substantial additional liquidity and greater financial flexibility to
continue to aggressively pursue attractive acquisitions. It also
reduces both our LIBOR margin pricing and financial covenant
monitoring. This is a major accomplishment for the Company."
Peter McWeeny, Vice President, GE Antares, remarked, "With this
new facility, we look forward to continuing to assist Beacon in
expanding its already significant presence in the North American
roofing and building products market. Beacon has a talented and
experienced management team that has been very successful in growing
the Company quickly and profitably and we highly value our partnership
with them."
About Beacon Roofing Supply Inc.:
Beacon Roofing Supply, Inc. is a leading distributor of roofing
materials and complementary building products operating 156 branches
in 31 states and in Eastern Canada.
Forward-Looking Statements:
This release contains information about management's view of the
Company's future expectations, plans and prospects that constitute
forward-looking statements for purposes of the safe harbor provisions
under the Private Securities Litigation Reform Act of 1995. Actual
results may differ materially from those indicated by such
forward-looking statements as a result of various important factors,
including, but not limited to, those set forth in the "Risk Factors"
section of the Company's latest Form 10-K. In addition, the
forward-looking statements included in this press release represent
the Company's views as of the date of this press release and these
views could change. However, while the Company may elect to update
these forward- looking statements at some point, the Company
specifically disclaims any obligation to do so other than as required
by federal securities laws. These forward-looking statements should
not be relied upon as representing the Company's views as of any date
subsequent to the date of this press release.
CONTACT: Beacon Roofing Supply, Inc.
David Grace, 978-535-7668 x14
SOURCE: Beacon Roofing Supply, Inc.