Tecnoglass, Inc. (NYSE: TGLS) has announced significant enhancements to its senior secured revolving credit facility, increasing the borrowing capacity from $150 million to $500 million. This expansion provides the company with substantial financial flexibility for growth and capital allocation. Additionally, the company has successfully extended the initial maturity date by five years to the end of 2030, which demonstrates strong institutional confidence in the company's strategic direction.
The amended credit facility has reduced the all-in borrowing costs by 25 basis points across all pricing tiers, further strengthening the company's financial position. The borrowing 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%.
Santiago Giraldo, Tecnoglass chief financial officer, highlighted the overwhelming support from the company's banking syndicate, which demonstrated confidence in their strategic direction and operational excellence. The expanded facility and extended maturity provide the company 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.
The increased facility was anchored by a premier U.S. banking syndicate, including Wells Fargo Bank N.A. as the 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.
It's noteworthy that the net debt to adjusted EBITDA ratio remains at an all-time low ratio of -0.09x, indicating the company's strong financial position and disciplined approach to managing its debt.
These developments underscore Tecnoglass' commitment to maintaining one of the strongest balance sheets in its industry, supported by its strong record of cash generation and the enhanced credit facility.
Tecnoglass, Inc. is a leading producer of high-end aluminum and vinyl windows and architectural glass, serving the multi-family, single-family, and commercial end markets. The company's vertically integrated manufacturing complex in Barranquilla, Colombia, efficiently serves nearly 1,000 customers in North, Central, and South America, with the United States accounting for 95% of total revenues. The company's tailored, high-end products are featured in some of the world's most distinctive properties, solidifying its position as a key player in the industry. The market has reacted to these announcements by moving the company's shares 1.08% to a price of $72.74. Check out the company's full 8-K submission here.
