Installed Building Products Inc., an installer of insulation and complementary building products, closed a private offering of $300 million in 5.75 percent senior unsecured notes due Feb. 1, 2028. In addition, the company entered into a new and increased $200 million asset-based lending revolving credit facility.
The $200 million New ABL Revolver matures on Sept. 26, 2024 and replaces IBP’s prior $150 million ABL revolving credit facility.
Approximately $194 million of net proceeds from the sale of the notes was used to repay a portion of the current borrowings under the company’s Term Loan B credit facility, and the remainder will be used for general corporate purposes.
The sale of the notes, combined with the remaining balance under IBP’s Term Loan B, and increased availability under the New ABL Revolver staggers the company’s debt maturities and provides significant financial flexibility and access to capital.
There is nothing currently drawn on the New ABL Revolver. Bank of America N.A. served as administrative agent. KeyBank National Association and US Bank National Association served as the syndication agents and PNC Bank, National Association is also a lender.