Tecnoglass, Inc. has made significant changes to its senior secured revolving credit facility, as announced in a recent press release. The company has increased the borrowing capacity under its committed line of credit from $150 million to $500 million. This substantial increase in availability provides the company with significant financial flexibility for growth and capital allocation.
Furthermore, the all-in borrowing costs have been reduced by 25 basis points across all pricing tiers, while the initial maturity date has been extended by five years to the end of 2030. 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%.
One of the key financial metrics highlighted in the press release is the net debt to adjusted EBITDA ratio, which remains at an all-time low ratio of -0.09x net debt to adjusted EBITDA. This metric indicates the company’s strong financial position and ability to generate earnings before interest, taxes, depreciation, and amortization in excess of its net debt.
The increased facility, anchored by a premier U.S. banking syndicate, received overwhelming support, demonstrating strong institutional confidence in the company’s ongoing growth and strategic direction. The expansion of the committed facility by over three times to $500 million, coupled with the five-year maturity extension to 2030, provides Tecnoglass with robust financial flexibility to capitalize on growth opportunities, particularly with its U.S. expansion efforts.
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. serving as joint lead arrangers.
Following these announcements, the company's shares moved 1.08%, and are now trading at a price of $72.74. Check out the company's full 8-K submission here.
