Huttig Building Products, Inc. Extends $120 Million Credit Facility
ST. LOUIS, MO -- (Marketwire) -- 12/21/12 -- Huttig Building
Products, Inc. (OTCQB: 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 for five years from the execution date, to
December 21, 2017. 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) are
co-lenders under the facility.
Philip W. Keipp, Huttig's Vice President and Chief Financial Officer,
said, "While our existing credit agreement did not expire until
September 2014 we believe that the current lending market, along with
our improved financial performance, provides an opportunity to secure
a long-term agreement which works very well for the Company. We are
pleased to continue our relationship with GECC and Wells Fargo who
have been valued lending partners."
Pricing for the amended facility is based on LIBOR plus 225 to 275
basis points, depending on levels of average availability. Under the
prior facility, executed in September 2010, pricing was at LIBOR plus
225 to 300 basis points. At closing, the initial pricing is LIBOR
plus 250 basis points. In addition, among other things, the amended
facility provides for certain changes to the borrowing base,
permitted acquisition, and cash dominion provisions of the agreement.
"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 proven
ability to manage through a challenging market environment while
putting itself in position to take advantage of growth opportunities
presented by an improving housing market. Executing the facility
allows us to remain focused on meeting market challenges and growing
our business while mitigating lending risks which may be brought by
any general economic or political uncertainty," 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, founded in 1885 and headquartered in St.
Louis, MO, is a leading domestic distributor of millwork, building
materials and wood products used principally in new residential
construction and home improvement, remodeling and repair work. Huttig
has relationships with leading manufacturers and distributes its
products through 27 wholesale 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 manufactured homes.
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,
2011 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.
For more information about Huttig, please visit www.huttig.com or Don
Hake at firstname.lastname@example.org.
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