Foundation Building to pay down ABL facility with asset sale proceeds

By Marisa Wong

Morgantown, W.Va., Sept. 27 – Foundation Building Materials, Inc. said it will pay down its ABL credit facility using $116 million of proceeds from an asset sale.

Foundation Building announced on Thursday that it plans to sell its mechanical insulation segment to an affiliate of Dunes Point Capital, LP. The transaction is expected to close in the fourth quarter.

In addition to the upcoming reduction of the ABL facility, the company recently completed a refinancing of its long-term debt and expects $12 million to $15 million of annual cash interest expense savings beginning in the fourth quarter, according to a press release.

The company said that with these two transactions it believes it will have ample liquidity to pursue its growth initiatives while continuing to focus on reducing debt.

Foundation Building is a Tustin, Calif.-based building materials company.

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