EIGHTY FOUR, Penn. — 84 Lumber Company has entered into a new 7-year $310 million Senior Secured Term Loan B Facility and 5-year $400 million Asset Based Revolving Credit Facility, the company announced. The proceeds will be used to refinance the $307.5 million outstanding Term Loan B and $400 million ABL Revolver. In addition to extending the maturities, the Term Loan B reduced pricing by 100 basis points to LIBOR plus 425 basis points. As a result of the refinancing, the company now has no debt maturities prior to 2024.
Under the leadership of Maggie Hardy Knox, the company will focus on increasing productivity through information technology systems and processes. 84 Lumber believes this capital structure will continue to provide management with the operational flexibility to grow while also taking advantage of the housing market.
“I’m immensely proud of the performance of our company over the last three years. Our capital structure will continue to provide us the flexibility to opportunistically expand and build on our current and future successes. We have the right people and the necessary resources in place to take our company to the next level,” said Maggie Hardy Knox, president of 84 Lumber.
“We continuously evaluate opportunistic transactions that not only lower our interest expense, but strengthen our balance sheet and improve cash flows. The new term loan facility will reduce our future annual cash interest by approximately $3 million, as well as extend our debt maturity profile,” continued Hardy Knox.
84 Lumber’s sales rose to $3.86 billion in 2018, posting a year-over-year increase and extending a steady upward trend over the last five years. The company’s revenues were $2.86 billion and $3.3 billion in 2016 and 2017, respectively.
“We are taking this industry by storm. The future is bright at 84 Lumber and I will always support our hard-working and dedicated associates by investing in them and the company,” said Hardy Knox.
Founded in 1956 and headquartered in Eighty Four, Pennsylvania, 84 Lumber Company now operates approximately 250 stores, component manufacturing plants, custom door shops, custom millwork shops and engineered wood product centers in more than 30 states. 84 Lumber also offers turnkey installation services for a variety of products, including framing, insulation, siding, windows, roofing, decking and drywall.