ST. LOUIS, MO--( September 10, 2010) - Huttig Building Products, Inc. (OTCBB: HBPI), a leading domestic distributor of millwork, building materials and wood products, today announced it has entered into an agreement to amend and extend its $120 million senior secured credit facility. The amendment, among other things, extends the facility from October 20, 2011 to September 3, 2014. The amended facility can be increased to $160 million, through an uncommitted $40 million accordion feature, subject to certain conditions. General Electric Capital Corporation (GECC) and Wells Fargo Capital Finance, LLC (Wells Fargo) acted as Co-Syndication Agents.
Philip W. Keipp, Huttig's Vice President and Chief Financial Officer, said, "We believe improved conditions in the lending market, coupled with the level of interest received from our lenders, made this an opportune time to complete our refinancing. We also feel we have alleviated any unforeseen lending risks which may otherwise arise in the markets. We are pleased to continue our relationship with GECC and to partner with Wells Fargo."
Pricing for the amended facility is based on LIBOR plus 225 to 300 basis points, depending on levels of average availability. Under the prior facility, executed in October 2006, pricing was at LIBOR plus 100 to 175 basis points. At closing, the initial pricing is LIBOR plus 250 basis points, compared to LIBOR plus 125 basis points under the prior facility.
"The amended credit facility will provide the Company with additional borrowing capacity and bring increased financial flexibility. We believe the agreement is an endorsement of the Company's ability to compete in an otherwise challenging market place. Executing the facility allows us to remain focused on meeting market challenges and growing our business," said Mr. Keipp.
Further details concerning the amendment are contained in the Company's Current Report on Form 8-K which has been filed with the Securities and Exchange Commission.
About Huttig Building Products, Inc.
Huttig Building Products, Inc., headquartered in St. Louis, Mo., is in its 125th year of business, and is a leading domestic distributor of millwork, building materials and wood products used principally in new residential construction and in home improvement, remodeling and repair work. Huttig distributes its products through 27 distribution centers serving 41 states. The Company's wholesale distribution centers sell principally to building materials dealers, national buying groups, home centers and industrial users, including makers of manufactured homes.
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