St. Louis-based Huttig Building Products chose LaSalle Bank to lead its new $160 million credit facility due to its strong local presence. "They are based in Chicago and have a very strong office here in St. Louis," noted Thomas McHugh, v.p. finance and cfo. "That local relationship is extremely important to effectively work through any goals or objectives that both parties are trying to achieve."
LaSalle had been a lender to Huttig for five years, butJ.P. Morgan was the previous administration agent and is not a participant in the new credit. "It was a fair process and LaSalle came in with the winning proposal," McHugh said. The new credit is priced at LIBOR plus 1-2%, compared to LIBOR plus 2-3% on the previous credit. "I think it is equally a reflection of improved financial performance for Huttig as well as LaSalle's desire to win the business," he added.
The company switched from an asset-based facility to a cash-flow credit for the refinancing. The new bank line comprises a $130 million revolver and $30 million term loan. "Asset-based lending is a little bit different. I think it's a great vehicle for asset-rich companies," McHugh said. "What you get more on the cash-flow side of the lending is a group of lenders who are more growth driven and company performance driven."
Other lenders in the credit are Harris Bank, GE Capital, National City Bank, Charter One, Fifth Third Bank and First Bank.