Huttig Building Products, Inc. Extends $120 Million Credit Facility
ST. LOUIS, MO -- (Marketwire) -- 09/10/10 -- Huttig Building
Products, Inc. (OTCBB: HBPI), a leading domestic distributor of
millwork, building materials and wood products, today announced it
has entered into an agreement to amend and extend its $120 million
senior secured credit facility. The amendment, among other things,
extends the facility from October 20, 2011 to September 3, 2014. The
amended facility can be increased to $160 million, through an
uncommitted $40 million accordion feature, subject to certain
conditions. General Electric Capital Corporation (GECC) and Wells
Fargo Capital Finance, LLC (Wells Fargo) acted as Co-Syndication
Philip W. Keipp, Huttig's Vice President and Chief Financial Officer,
said, "We believe improved conditions in the lending market, coupled
with the level of interest received from our lenders, made this an
opportune time to complete our refinancing. We also feel we have
alleviated any unforeseen lending risks which may otherwise arise in
the markets. We are pleased to continue our relationship with GECC
and to partner with Wells Fargo."
Pricing for the amended facility is based on LIBOR plus 225 to 300
basis points, depending on levels of average availability. Under the
prior facility, executed in October 2006, pricing was at LIBOR plus
100 to 175 basis points. At closing, the initial pricing is LIBOR
plus 250 basis points, compared to LIBOR plus 125 basis points under
the prior facility.
"The amended credit facility will provide the Company with additional
borrowing capacity and bring increased financial flexibility. We
believe the agreement is an endorsement of the Company's ability to
compete in an otherwise challenging market place. Executing the
facility allows us to remain focused on meeting market challenges and
growing our business," said Mr. Keipp.
Further details concerning the amendment are contained in the
Company's Current Report on Form 8-K which has been filed with the
Securities and Exchange Commission.
About Huttig Building Products, Inc.
Huttig Building Products, Inc., headquartered in St. Louis, Mo., is
in its 125th year of business, and is a leading domestic distributor
of millwork, building materials and wood products used principally in
new residential construction and in home improvement, remodeling and
repair work. Huttig distributes its products through 27 distribution
centers serving 41 states. The Company's wholesale distribution
centers sell principally to building materials dealers, national
buying groups, home centers and industrial users, including makers of
Forward Looking Statements
This press release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to our outlook on the housing industry.
All of these forward-looking statements are based on estimates and
assumptions made by our management that, although believed by Huttig
Building Products, Inc. to be reasonable, are inherently uncertain.
Forward-looking statements involve risks and uncertainties,
including, but not limited to, economic, competitive, governmental
and technological factors outside of Huttig Building Products, Inc.'s
control that may cause its business, strategy or actual results to
differ materially from the forward-looking statements. These risks
and uncertainties are described in the "Risk Factors" section in the
Company's Annual Report on Form 10-K for the year ended December 31,
2009 and in its periodic reports filed with the Securities and
Exchange Commission from time to time. Given these risks and
uncertainties, you are cautioned not to place undue reliance on
forward-looking statements. Huttig Building Products, Inc. undertakes
no obligation to publicly update or revise any forward-looking
statement as a result of new information, future events, changes in
expectation or otherwise, except as required by law.
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