Masonite to amend its credit facility, reducing rates, allowing debt repayment

By Sara Rosenberg

New York, July 11 - Masonite International entered into an agreement with SunTrust Bank to amend its senior secured credit facility. Under the amendment, the company will be able to prepay $125 million of 11.25% subordinated debt for $105 million and interest rates on the credit facility will be reduced, the company said. The transaction is expected to close by July 31.

Following the completion of the transaction, Masonite's total debt will consist of $700 million in secured credit facilities of which approximately $590 million will be outstanding at July 31, the company said.

Market talk is that the amended credit facility will consist of a term loan A sized at approximately $100 million, a revolver sized at approximately $100 million and a term loan B sized at approximately $460 million, market sources said. The term loan B is expected to carry an interest rate of Libor 275 basis points. Currently, the company's term loan B is said to have an interest rate of Libor plus 350 basis points. Neither the company nor the syndicate was immediately available to confirm this information.

Masonite is a Mississauga, Ont. building products company.

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