Universal Forest secures $375M credit facility
Universal Forest Products has expanded an unsecured revolving credit facility by $80 million.
Grand Rapids-based Universal Forest Products said last week it entered into a five-year, $375-million unsecured revolving credit facility with a syndicate of U.S. and Canadian banks led by JPMorgan Chase as administrative agent and Wells Fargo as syndication agent.
The new agreement, which commenced Nov. 1, replaces the prior $295-million unsecured revolving credit facility agreement with the same agents.
“Our finance team did an excellent job of working with the lenders to expand our credit facility,” said Matthew Missad, CEO, Universal Forest Products.
“We believe it is advantageous to secure additional credit when it isn’t needed. This new arrangement provides us with the flexibility to invest in new products, automation, facilities, technology and targeted acquisitions, while still maintaining a very strong balance sheet. It also reflects the confidence our lenders have in our business and the future of the company.”
Terms of the agreement
The credit facility includes up to $40 million, which may be advanced in the form of letters of credit, and up to $100 million, which may be advanced in Canadian dollars, Australian dollars, pounds sterling, euros and other foreign currencies that may be agreed upon among the parties, according to a Form 8-K filed by Universal Forest with the SEC on Nov. 2.
There were no borrowings outstanding on the previous $295-million unsecured revolving credit facility as of Nov. 1, excluding supported letters of credit aggregating about $10 million.
Founded in 1955, Universal Forest Products (Nasdaq: UFPI) is a holding company that provides capital, management and administrative resources to subsidiaries that supply wood, wood composite and other products to retail, construction and industrial markets.
Its affiliates are located throughout North America, Australia, Europe and Asia.
The company had 2017 net sales of $3.94 billion.