Brightview Holdings, Inc. (NYSE: BV) has just announced a significant increase and extension of its receivables financing facility. The company's wholly-owned subsidiary, Brightview Funding LLC, has increased the overall size of its existing receivables financing agreement from $275 million to $325 million and extended its maturity date from June 2025 to June 2027. Additionally, the receivables facility now includes an "accordion feature" that allows for an additional $100 million increase to the borrowing capacity, with PNC Bank, National Association continuing to serve as administrative agent.
The amendment to the receivables facility not only increases the borrowing capacity but also improves the leverage-based pricing tiers, reduces the interest margin across all tiers, and reduces the fee for unused capacity. Furthermore, it features an improved structure for better cash management and utilization, allowing the company to efficiently utilize its excess cash to pay down a portion of its debt under the facility, approximately $75 million. These changes, combined with improved pricing, are expected to result in interest expense savings of more than $5 million per year.
Brett Urban, Brightview's Chief Financial Officer, emphasized the significance of these actions, stating that the recent repricing of their term loan and the favorable terms of this transaction demonstrate the confidence of their lenders and investors. He also highlighted that such actions exemplify their commitment to sustained profitable growth.
Following these announcements, the company's shares moved -0.4%, and are now trading at a price of $13.3. For the full picture, make sure to review BrightView's 8-K report.
