Tecnoglass, Inc. has announced an amendment to its senior secured revolving credit facility, significantly increasing the borrowing capacity under its committed line of credit from $150 million to $500 million. This amendment also reduces the borrowing costs by approximately 25 basis points and extends the initial maturity date by five years to the end of 2030.
The net debt to adjusted EBITDA ratio remains at an all-time low ratio of -0.09x net debt to adjusted EBITDA, indicating a strong financial position for the company. The increased facility, which is anchored by a premier U.S. banking syndicate, received overwhelming support, demonstrating strong institutional confidence in the company’s ongoing growth and strategic direction.
Borrowings under the credit facility will now bear interest at the secured overnight financing rate (SOFR) with no floor plus a spread of 1.25%, based on the company’s net leverage ratio, compared to a prior spread of 1.50%. This reduction in borrowing costs is a significant improvement for the company.
The facility was led by Wells Fargo Bank N.A. as administrative agent, with BMO Bank N.A, Citibank N.A, Citizens Bank N.A, First Citizens Bank & Trust Company, and J.P. Morgan Chase Bank N.A, as joint lead arrangers, indicating strong support from the banking syndicate.
This amendment provides Tecnoglass with strong financial flexibility to capitalize on robust growth opportunities, particularly with its U.S. expansion efforts, while maintaining a disciplined approach to achieving above-industry returns on invested capital.
Tecnoglass Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass, with its 5.8 million square foot manufacturing complex located in Barranquilla, Colombia. The United States accounts for 95% of its total revenues, and the company's tailored, high-end products are found on some of the world’s most distinctive properties.
This amendment to the credit facility reflects the company’s commitment to strengthening its financial position and capitalizing on growth opportunities in the residential and commercial end markets. Following these announcements, the company's shares moved 1.08%, and are now trading at a price of $72.74. For the full picture, make sure to review Tecnoglass's 8-K report.
