Builders FirstSource Completes $350 Million Senior Secured Notes Offering And New $175 Million Revolving Credit Facility

DALLAS, May 30, 2013 (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 the successful completion of its previously announced private offering of $350 million aggregate principal amount of 7.625% Senior Secured Notes due 2021. In conjunction with the offering, the company also entered into a new 5-year $175 million revolving credit facility (the "Facility") provided by a syndicate of seven financial institutions arranged by SunTrust Robinson Humphrey, Inc. At closing, the company's borrowing availability under the Facility was approximately $162.3 million, after reducing for $12.7 million of outstanding letters of credit ("LC's").

Floyd Sherman, Builders FirstSource Chief Executive Officer, commented, "Today marks a very important day for our company. This financing transaction provides a more permanent capital structure, reduces annual interest by up to $16 million and provides ample liquidity that will allow us to take advantage of the recovering housing market and the growth that comes with it. This refinancing could not have been accomplished without the support and sacrifice of our employees and shareholders. We also appreciate the strong support from our bank partners in getting this transaction completed."

Net proceeds from the offering, together with cash on hand, were used to (i) redeem the company's $139.7 million aggregate principal amount of second priority senior secured floating rate notes due 2016 at par plus accrued and unpaid interest thereon to the redemption date, (ii) pay in full $225.0 million in term loan borrowings outstanding under the company's existing credit facility plus a prepayment premium of approximately $39.5 million and accrued and unpaid interest and terminate the company's existing credit facility, and (iii) pay commissions, fees and expenses in connection therewith.

The Facility provides for a $175 million revolving credit line, subject to borrowing base limitations, which is available for working capital and general corporate purposes. It also provides the company with access to an additional $150 million of potential financing through an accordion feature, which accordion feature is subject to the availability of sufficient borrowing base and additional commitments from lenders. The Facility contains a $50 million letter of credit sublimit, under which the company's $12.7 million of outstanding LC's were transferred. Borrowings under the Facility bear interest at a margin over a base rate or the Eurodollar rate. Loans are secured by a first lien interest in substantially all "liquid" assets of the company, primarily accounts receivable and inventory, and a second lien in substantially all fixed assets and are guaranteed by the company and certain of its subsidiaries.

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