PEABODY, Mass.--(BUSINESS WIRE)--
Beacon Roofing Supply, Inc. (Nasdaq: BECN) ("Beacon" or the "Company")
announced today that it has entered into a new, five-year senior secured
credit facility consisting of a $550 million U.S. credit facility and a
C$15 million Canadian credit facility with Wells Fargo Bank, National
Association ("Wells Fargo"), as administrative agent and as a lender,
and other lenders (combined, the "Credit Facility"). The Credit Facility
refinanced the Company's prior combined $515 million credit facilities
that were provided through GE Antares and an affiliate. Wells Fargo
Securities, LLC, an affiliate of Wells Fargo, serves as the lead
arranger and joint bookrunner on the new facility, which provides the
Company with historically low interest rates and readily available funds
for future acquisitions and ongoing working capital requirements.
Borrowings under the Credit Facility bear interest at a rate equal to
LIBOR plus a margin. Such margin is initially 1.75% per annum, and can
range from 1.50% to 2.50% per annum depending upon the Company's Total
Leverage Ratio (as defined in the Credit Facility). Financial covenants
are comprised of a maximum total leverage ratio and a minimum interest
coverage ratio.
David Grace, the Company's Executive Vice President & Chief Financial
Officer, stated, "We are very pleased to enter into this new arrangement
with Wells Fargo, who understands our business and our unique position
in the industry. The new credit facility provides attractive LIBOR
margin pricing, reasonable financial covenants, and substantial
liquidity and financial flexibility to aggressively pursue acquisitions
and grow our Company. The timing for us to refinance was ideal because
interest rates are at historical low levels. There also was a very high
level of interest from lenders because of our successful history of
growth and profitability. This credit facility is a significant
milestone in Beacon's history."
Paul Isabella, the Company's President & Chief Executive Officer, added,
"We are thrilled with this new credit facility as we believe this sets
us up with a terrific platform for our long-term growth. All of our
employees helped to make this achievement possible as our strong
performance resulted in substantial lender interest. Our strong balance
sheet and excellent credit standing helped us to obtain very low
interest rates, which we have secured for the next five years. Beacon's
future is even brighter under this new larger facility."
Jeffrey Kinney, Senior Vice President, Wells Fargo, remarked, "We look
forward to assisting Beacon in expanding its already significant
presence in the North American roofing and building products market. We
have had an excellent relationship with Beacon over the years and have
been impressed with Beacon's strong performance, even during the
recession. Beacon has a talented and experienced management team and we
are very excited about our new partnership with them."
About Beacon Roofing Supply Inc.:
Beacon Roofing Supply, Inc. is a leading distributor of roofing
materials and complementary building products, operating 193 branches in
38 states in the United States and across 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.
BECN-F
Beacon Roofing Supply, Inc.
Dave Grace, 978-535-7668 x14
CFO
dgrace@beaconroofingsupply.com
Source: Beacon Roofing Supply, Inc.
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