Huttig deal bolsters financing
St. Louis-based Huttig Building Products expanded its borrowing capacity.
The domestic distributor of millwork, building materials and wood products announced it entered a deal to amend and extend its $120 million senior secured credit facility.
"We believe the amended facility will enhance our financial flexibility and provide greater liquidity to support our business growth,” said Philip W. Keipp, Huttig’s VP and CFO.
The amendment, among other things, increases borrowing capacity from $120 million to $160 million, reduces interest rate charges and extends the facility for five years from the execution date, to May 28, 2019.
General Electric Capital Corporation (GECC) and Wells Fargo Capital Finance (Wells Fargo) are co-lenders under the facility.
“While our existing credit agreement did not expire until December 2017, we believe that the current lending market, along with our improved financial performance, provides an opportunity to secure a long-term agreement, which works very well for the company,” said Keipp. “We are pleased to continue our relationship with GECC and Wells Fargo who have been valued lending partners.”
Huttig’s sales increased 9% in its most recent quarter, but it posted a net loss of $4.0 million.