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Eyeing future expansion efforts and system enhancements, 84 Lumber Co. has entered into a new seven-year, $310 million Senior Secured Term Loan B Facility and five-year $400 million Asset Based Revolving Credit Facility.
The proceeds will be used to refinance the $307.5 million outstanding Term Loan B and $400 million ABL Revolver. In addition to extending the maturities, the Term Loan B reduced pricing by 100 basis points to LIBOR plus 425 basis points. As a result of the refinancing, the chain now has no debt maturities prior to 2024.
“Our capital structure will continue to provide us the flexibility to opportunistically expand and build on our current and future successes,” said president Maggie Hardy Knox. “We continuously evaluate opportunistic transactions that not only lower our interest expense, but strengthen our balance sheet and improve cash flows. The new term loan facility will reduce our future annual cash interest by approximately $3 million, as well as extend our debt maturity profile.”
