Patrick Industries has announced it intends to offer up to $350 million in senior notes that would be due 2029. Those 4.75 percent senior notes would be offered in a private placement exempt from registration under the Securities Act of 1933.
The offering is expected to close on or about April 20, subject to certain closing conditions, according to the company.
Patrick Industries said it intends to use the net proceeds from the offering to repay a portion of its borrowings under its existing senior secured credit facility, to pay fees and expenses in connection with the foregoing, and for general corporate purposes.
Following the completion of the offering, the company plans to amend and restate the credit agreement governing its existing $650 million senior secured credit facility to establish a new $700 million senior secured credit facility consisting of a $550 million revolving credit loan and a $150 million term loan.
The maturity date for borrowings under the new senior secured credit facility is expected to be extended to April 2026. The new senior secured credit facility is expected to replace the company’s existing credit facility that is due to mature in September 2024.