BOISE, Idaho - BMC, one of the nation's leading providers of building materials and construction services, today announced that it has expanded its total line of credit to up to $125 million with Wells Fargo Capital Finance, part of Wells Fargo & Company (NYSE: WFC), the company's working capital lender. The expanded facility will provide the company greater financial flexibility to respond to opportunities in the market, with additional funds available as needed to support its general working capital needs and growth initiatives.
The amendment extends BMC's existing credit facility from $50 million to $75 million and includes a revolving accordion feature that allows BMC to borrow up to an additional $50 million. In addition, the amendment extends the term of the credit facility by three years to January 4, 2016, and reduces the interest rate and commitment fees thereby reducing the company's total borrowing costs. BMC currently has no cash borrowings under its existing facility.
"This expanded credit facility provides BMC with additional financial flexibility on improved economic terms," said Danny McQuary, chief financial officer of BMC. "We appreciate the continued support from Wells Fargo Capital Finance and believe that BMC is well positioned to take advantage of opportunities in our market and make strategic investments in our growth strategy."
"We have worked with BMC for more than two years and are pleased to extend and expand our relationship," said Guy Fuchs, executive vice president and head of the Corporate Finance Group of Wells Fargo Capital Finance. "BMC has made impressive and tangible progress over the past few years, and we remain committed to supporting the company's future growth. We look forward to a continued strong relationship with BMC."
BMC operates in 16 markets in nine states, eight of which are in the top 25 single family construction markets, and has approximately 3700 employees.
Have something to say? Share your thoughts with us in the comments below.