Buildings Materials Holding Corp. has amended its credit facility to increase it from $350 million to $500 million with the possibility of expanding it a further $150 million. Pricing has also been cut on a $125 million term loan by 25 basis points. The company, which supplies residential building materials and construction services, has experienced 50% growth over the past year and according to Mark Kailer, v.p. and treasurer, the practice has always been to expand the facility as it experiences significant growth.
In addition, "The current climate of the industry creates a very friendly market for borrowers. It just so happened that as the company experienced growth we were able to walk right into a very timely market," Kailer said. There are plenty of ample assets out there for borrowers and we are here to put them to work."
Wells Fargo Bank is sole bookrunner and leads the credit, which was put in place in 2003. The revolver has been increased by $175 million to $300 million and a $75 million term note has been added. It also comprises the seven-year, $125 million term loan "B." Interest rates range from 75 basis points to 200 basis points for the revolver and term loans. "Overall, I am very satisfied with the pricing and the amendment that we were able to get. We've re-priced this deal twice, once in May of 2004 and again in April of this year. When you look at the industry, I feel that our pricing is at the market," Kailer commented.
Wells Fargo has worked with Building Materials since its inception in 1987 and acted as co-lead arranger with SunTrust Bank. The co-documentation agents were JPMorgan, LaSalle Bank and U.S. Bank. Buildings Materials has had a good working relationship with LaSalle and U.S. Bank, but had never worked with JPMorgan or SunTrust, who approached the company about joining the syndicate.