Huttig Building Products ups credit facility to $160 million

By Toni Weeks

San Luis Obispo, Calif., May 29 - Huttig Building Products, Inc. amended its senior secured credit facility, increasing the borrowing capacity to $160 million from $120 million, according to a press release.

The facility may be increased via a $40 million accordion feature to $200 million.

The amendment also reduced interest rate charges and extended the facility to May 28, 2019 from Dec. 21, 2017.

Borrowings currently bear interest at Libor plus 200 basis points. The margin may range from 150 bps to 225 bps based on levels of average borrowing availability. In the previous credit facility, interest was Libor plus 225 bps to 275 bps, according to the release. Index rate margins were also reduced.

The unused line fee margin is now 25 bps, based on average borrowing availability and decreased from the previous 30 bps to 37.5 bps.

According to an 8-K filing with the Securities and Exchange Commission, the company must adhere to a single financial covenant, the minimum fixed-charge coverage ratio, which is now 1.05 to 1.00, down from 1.25 to 1.00. On any day that the borrowing availability is less than the minimum availability amount, Huttig must have on a consolidated basis, at the end of each fiscal quarter, a fixed-charge coverage ratio for the 12-month period then ended of not less than 1.05 times.

The amendment also revised the definition of minimum availability amount to mean an amount equal to the greater of $12.5 million, previously $10 million, and $12.5% of the borrowing base (but not to exceed 12.5% of the maximum amount) as of that date.

General Electric Capital Corp. and Wells Fargo Capital Finance, LLC are co-lenders under the facility.

St. Louis-based Huttig is a distributor of millwork, building materials and wood products.

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