DALLAS, Dec. 18, 2012 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:BLDR), a leading supplier and manufacturer of structural and related building products for residential new construction in the United States, today announced it amended its first-lien term loan agreement (the "Term Loan") with affiliates of Highbridge Principal Strategies, LLC. The company amended the Term Loan to enhance its liquidity position to support both current and anticipated increases in sales volume.
Floyd Sherman, Builders FirstSource Chief Executive Officer said, "Our year-over-year sales growth exceeded 30% in each of the past four quarters, and we currently see no signs of our sales pace slowing. This strong growth prompted us to proactively seek additional liquidity to support our higher working capital requirements. We believe the $93 million of incremental liquidity to be provided by this transaction will enable us to continue growing market share and take further advantage of improving demand for housing."
Material terms of the amendment include:
- Increasing the principal amount by $65 million
- The additional principal was issued at 95.5%, resulting in approximately $60 million of net cash received after fees and expenses, with no modifications to interest rate and maturity
- Reducing the minimum cash requirement from $35 million to $15 million
- Adding a separate $15 million letter of credit ("LC") commitment by SunTrust Bank, which is expected to reduce the company's current cash collateral requirement for LC's by approximately $13 million upon satisfaction of certain post-closing conditions
- Increasing the minimum specified collateral value to $225 million, contingent upon maintaining certain levels of qualified cash
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