Patrick Industries Signs Senior Credit Facility

  Print Print

March 31, 2011 by   Comments Off on Patrick Industries Signs Senior Credit Facility

Patrick Industries Inc. announced today (March 31) that it has entered into a credit agreement with Wells Fargo Capital Finance LLC as the lender and agent, establishing a four-year $50 million revolving secured senior credit facility.

Additional subordinated debt financing of $5 million was provided by Tontine Capital Overseas Master Fund II LP, a significant shareholder of Patrick, and Northcreek Mezzanine Fund I LP in the form of secured senior subordinated notes, according to a news release. As part of the consideration for the notes, the company issued warrants to purchase 125,000 shares of common stock to each of Tontine and Northcreek at an exercise price of $0.01 per share. The warrants are immediately exercisable and expire on March 31, 2016.

Patrick, an Elkhart, Ind.-based supplier to the RV and manufactured housing industries, used the proceeds of these financings to repay in full its existing senior credit facility at par. In addition, the company terminated and paid off its existing interest rate swap agreements. The swaps had a total fair value in the amount of $1.1 million on the termination date.

“We are excited to have entered into this new credit agreement which, based on our projections, provides the availability for Patrick to finance its ongoing working capital needs and general corporate purposes for the next four years,” said Todd Cleveland, president and CEO. “We are also very appreciative of the support that JPMorgan Chase and our other senior lenders have provided throughout the process of not only weathering the severe economic downturn, but in allowing us the time and opportunity to put a competitive facility in place to meet both our short-term and long-term needs. In addition, we look forward to our new partnership with Wells Fargo and Northcreek, as well as continuing our ongoing strong relationship with Tontine.”

[Slashdot] [Digg] [Reddit] [Facebook] [Google] [StumbleUpon]


Comments are closed.