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UFPI Announces Successful Issuance Of Long-Term Debt And New Acquisition Agreement

Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that it has successfully negotiated loan agreements with Prudential Investment Management, Inc. totaling $75 million, which will be used to refinance $40 million of existing notes and for expansionary capital, including the acquisition of Custom Caseworks, Inc., a manufacturer of commercial casework, fixtures and related products.

“These are exciting times for the companies of Universal. With these successful transactions, we’ve added yet another thriving company to our business portfolio, and we’re armed with the capital necessary to continue to grow our company and our opportunity,” said CEO Matthew J. Missad.

The notes negotiated with Prudential include unsecured ten-year Series A Senior Notes at 3.89 percent interest totaling $35 million, and unsecured 12-year Series B Senior Notes at 3.98 percent interest totaling $40 million. Proceeds from the issuance of the notes will be used by the Company to refinance its existing Series 2002-A Senior Notes totaling $40 million, which carried a 6.16 percent interest rate, and for general corporate purposes.

The notes allow the Company to, among other things, pay down its revolving credit line used for the November 2012 purchase of Washington-based Nepa Pallet and Container Co., and provide capital for the pending purchase of Custom Caseworks, Inc., which is expected to close no later than December 31, 2012.

“Our Chief Financial Officer Mike Cole and our finance team did a great job putting this credit facility together,” Missad said. “Thanks to their efforts we have locked in long-term debt at very favorable rates.”

Founded in 1994 and located in Sauk Rapids, Minn., Custom Caseworks is a manufacturer of point-of-purchase and commercial store fixtures, commercial casework and office furniture, laminated and painted wood panels, and OEM-manufactured and private label products. Its products and processes are strong complements to Universal’s growing industrial products and customer base. Custom Caseworks has annual sales of nearly $7 million, and recently added capacity for future growth.

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