Associated Materials amends revolver to extend maturity, cut rates

By Jennifer Chiou

New York, April 23 - Associated Materials, LLC entered into on April 18 an amendment and restatement of its senior secured asset-based revolving credit facilities with UBS AG, Stamford Branch and UBS AG Canada Branch as administrative and collateral agents with Wells Fargo Capital Finance, LLC as co-collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

Other borrowers include parent AMH Intermediate Holdings Corp. and certain direct or indirect wholly owned U.S. and Canadian restricted subsidiaries.

The amendment was made to do the following:

• Reduce the interest rate margins by 75 basis points;

• Fix the commitment fee at a rate of 37.5 bps for tranche A revolving credit commitments instead of 50 bps with step-downs based on use;

• Extend the maturity of the loans and commitments to the earlier of April 18, 2018 and 90 days prior to the maturity of the company's 9 1/8% senior secured notes due 2017;

• Permit the offering of up to $100 million aggregate principal amount of additional 9 1/8% notes, of which proceeds in excess of $40 million will be used to prepay and terminate the company's existing tranche B revolving credit commitments; and

• Reduce, after the prepayment and termination of the tranche B revolving credit commitments, the trigger to test the springing minimum fixed-charge coverage ratio to only when excess borrowing availability is less than the greater of (1) 10% of the sum of (x) the lesser of (A) the U.S. tranche A defined borrowing base and (B) the U.S. tranche A revolving credit commitments and (y) the lesser of (A) the Canadian tranche A defined borrowing base and (B) the Canadian tranche A revolving credit commitments and (2) $20 million for a period of five consecutive business days until the 30th consecutive day when excess availability exceeds the above threshold.

Associated Materials manufactures and distributes exterior residential building products and is based in Cuyahoga Falls, Ohio.

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