Installed Building Products, Inc. (IBP) has closed a private offering of $500 million in aggregate principal amount of 5.625% senior unsecured notes due 2034. The net proceeds from the sale of the 2034 notes, after deducting fees and estimated offering expenses, were approximately $490 million. This amount was used to fund the conditional redemption in full of the outstanding 5.75% senior unsecured notes due 2028.
The company also amended its existing $250 million asset-based lending revolving credit facility to increase the commitments to $375 million and extend the maturity date to January 21, 2031. The ABL revolver is currently undrawn.
The combined effect of the sale of the 2034 notes, along with the balance under the company’s term loan B, and increased availability under the ABL revolver, extends IBP’s debt maturities and provides the company with significant financial flexibility and access to capital.
The press release also mentions that additional details on the 2034 notes offering and ABL revolver may be found in the Form 8-K to be filed with the Securities and Exchange Commission.
Installed Building Products, Inc. is a leading installer of insulation and complementary building products for residential and commercial builders in the continental United States. The company's portfolio of services includes waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving, mirrors, and other products. IBP operates from a national network of over 250 branch locations, serving all 48 continental states and the District of Columbia. Following these announcements, the company's shares moved -1.5%, and are now trading at a price of $309.70. If you want to know more, read the company's complete 8-K report here.
