Gibraltar Industries refinances with $400 million five-year revolver

By Mary-Katherine Stinson

Lexington, Ky., Dec. 9 – Gibraltar Industries, Inc. and its wholly owned subsidiary, Gibraltar Steel Corp. of New York, entered a credit agreement Dec. 8 providing a revolving credit facility and letters of credit totaling $400 million with KeyBank NA as administrative agent, swingline lender and issuing lender, according to an 8-K filing with the Securities and Exchange Commission.

The new facility replaces the company’s sixth amended and restated credit agreement dated Jan. 24, 2019.

The revolver contains an option to increase the size of the facility to $700 million in minimum increments of $25 million. The additional $300 million may be obtained as a term loan, an increase in the amount of the revolving credit facility available to the company or a combination of an increase in the revolving credit facility and one or more term loans.

Borrowings under the credit facility bear interest at SOFR plus 112.5 basis points initially, subject to a 0% SOFR floor. After March 31, the margin will be between 112.5 bps and 200 bps, based on the total net leverage ratio.

There is an annual commitment fee on the daily undrawn balance of the revolver, initially 20 bps, which ranges between 20 bps and 25 bps from and after April 1 also based on the company’s total net leverage ratio.

The credit agreement contains two financial covenants which prohibit the company from having a total net leverage ratio more than 4x or 4.5x during certain periods and an interest coverage ratio of less than 3x.

The facility matures Dec. 8, 2027 and is guaranteed by certain subsidiaries of the company.

Proceeds were used to pay in full and terminate the company’s existing credit facility. There were no prepayment penalties.

KeyBanc Capital Markets Inc. is the joint lead arranger and joint bookrunner. Bank of America, NA, M&T Bank, PNC Bank, NA are joint lead arrangers, joint bookrunners and co-syndication agents. Comerica Bank, TD Bank, NA and Wells Fargo Bank, NA are co-documentation agents.

Gibraltar makes building products and is based in Buffalo, N.Y.

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