Patrick Industries has announced its intention to offer, subject to market conditions and other factors, $300 million aggregate principal amount of senior notes due 2027 in a private placement exempt from registration under the Securities Act of 1933.
The interest rate, redemption prices and other terms of the notes are to be determined upon pricing of the offering. Patrick intends to use the net proceeds from the offering, together with borrowings under the new credit facility that Patrick expects to enter into simultaneously with the issuance of the notes which is described below, 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 plans to amend and restate its existing senior secured credit facility, from $900 million in the aggregate, to a new $650 million senior secured credit facility consisting of a $550 million revolving credit loan and a $100 million term loan.
The maturity date for borrowings under the new senior secured credit facility is expected to be extended by five years to September 2024. The new senior secured credit facility will replace the company’s existing credit facility that was due to mature in March 2022, with pricing and other material provisions to be finalized upon completion of the pricing of the offering of notes described above.