Columbus, Ohio–(work wire) – Installed Building Products, Inc. (“The Company”) (NYSE: IBP), a leading manufacturer of insulation and complementary building products, today announced that the Company has successfully closed its previously announced new 7-year, $500 million term loan (“”””). New Term Loan”).
The new term loan matures on December 13, 2028, has no financial maintenance commitments, is rated BB+ by S&P Global Ratings and Ba2 by Moody’s Investors Service. Moody’s has also upgraded the IBP family’s rating to Ba2 from Ba3 and its default rating potential to Ba2-PD from Ba3-PD. Pricing for the new term remains at LIBOR plus 225 basis points with a minimum LIBOR of 50 basis points. The net new term loan proceeds were used to refinance the previous term loan B of $200 million, with the remainder used for acquisitions, other growth initiatives and general corporate purposes.
Royal Bank of Canada will act as both the managing agent and the escrow agent for the new loan term. Both RBC Capital Markets and BofA Securities, Inc. and Goldman Sachs Bank USA as joint lead arrangers and joint bookrunners, while Loop Capital Markets LLC, US Bank National Association and KeyBanc Capital Markets Inc. and PNC Capital Markets LLC as co-managers of the new term loan.
Additional details of the credit facility can be found on Form 8-K filed today with the Securities and Exchange Commission.
About composite building products
Installed Building Products, Inc. is one of the largest new residential insulation installation companies in the country and is a diversified installer of complementary building products, including waterproofing, fire arresting, fire retardant, garage doors, rain gutters, window blinds, shower doors, cabinet racks, mirrors and other products for builders. Residential and commercial located in the continental United States. The company manages all aspects of the installation process for its clients, from direct purchase and receipt of materials from national manufacturers to timely supply of materials to job sites and quality installation. The company offers its range of services to new and existing single-family and multi-family residential and commercial building projects from its national network of more than 190 sub-locations.
This press release contains forward-looking statements within the meaning of the federal securities laws, including with respect to the use of new term loan proceeds, our financial and business model, demand for our services and product offerings, and our national expansion. Our footprint and end markets, our product diversification, our ability to grow and enhance our market position, our ability to pursue and integrate value-enhancing acquisitions, our ability to improve sales and profitability, demand forecasts for our services and our profits. Forward-looking statements may generally be identified by the use of words such as “expect,” “believe,” “expect,” “intend,” “plan,” and “will,” or, in each case, their negative words or other variations or similar terms. These forward-looking statements include all matters that are not historical facts. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future. Any forward-looking statements we make here and in any future reports and statements are not guarantees of future performance, and actual results may differ materially from those expressed or suggested by these forward-looking statements as a result of various factors, including, but not limited to, the duration of the COVID-crisis 19 and its impact and severity; the negative impact of the COVID-19 crisis on our business, financial results, supply chain, economy and the markets we serve; general economic and industrial conditions; material price and supply environment; timing of increases in our selling prices; and the factors discussed in the “Risk Factors” section of the company’s annual report on Form 10-K for the year ended December 31, 2020, as may be updated from time to time in our subsequent filings with the Securities and Exchange Commission. Any forward-looking statement made by the company in this press release speaks only as of the date of this statement. New risks and uncertainties arise from time to time, and it is impossible for the Company to foresee these events or how they will affect them. The Company is under no obligation and does not intend to update any forward-looking statements after the date of this Act, except as required by federal securities laws.