Patrick Industries has announced the closing of its previously announced private offering of $300 million aggregate principal amount of its 7.5 percent senior notes due 2027 at an issue price of 100 percent of the principal amount of the notes, in a private placement exempt from registration under the Securities Act of 1933.
Net proceeds from the offering, together with borrowings under the new credit facility that Patrick entered into simultaneously with the issuance of the notes, were used to repay all of the borrowings under its existing senior secured credit facility and to pay fees and expenses in connection with the foregoing.
Concurrently with the completion of the offering, the company amended and restated its credit agreement to consist of a $550 million revolving credit loan and a $100 million term loan. The maturity date for borrowings under the 2019 Credit Facility was extended to September 2024. The 2019 Credit Facility replaces the company’s existing credit facility that was due to mature in March 2022.
“The new notes and credit facility position us with capacity and a strong financing foundation to continue to support the company’s long-term strategic initiatives and disciplined capital allocation strategy and provide us with liquidity, dry powder, and flexibility to manage our businesses in a cyclical markets environment,” said Todd Cleveland, chairman and CEO.
“In addition, we look forward to our continued partnership with our bank group as we execute on our strategic plan, with the ultimate goal of providing exceptional products and service to our customer base and driving shareholder value,” said Andy Nemeth, president.