PW Eagle has refinanced its senior and subordinated debt to provide the company with a more stable capital structure, according to Scott Long, cfo of the maker of PVC pipe products. The new $100 million revolver replaces two senior facilities that comprised term loans and revolvers. The previous revolvers were asset-based loans based on inventories and receivables and the term loans had a fixed-asset value. "We've now effectively combined it into one facility that is a master revolver," Long said. But the new asset-based revolver has a fixed-asset collateral component. "That is in effect what we have in lieu of a traditional term loan structure," he added.
The company's old senior facilities were set to expire next September and there was a principal payment coming due on the subordinated notes the same month. "The timing was good for us," Long noted. He said pricing was comparable between the credit facilities but declined to disclose the spread. Bank of America is the lead arranger. Fleet Capital was the lead arranger prior to its merger with B of A. The other lenders are CIT Group and Wells Fargo Business Credit. Wells Fargo is new to the syndicate with this transaction. The notes are with Churchill Capital.