BMC expanded its total line of credit with Wells Fargo Capital Finance, an arm of its working capital lender, to $125 million, the company announced today. The expansion will provide BMC with greater financial flexibilities and additional funds to support its capital needs and growth initiatives.
The agreement extends the Boise, Idaho-based supplier’s existing credit facility from $50 million to $75 million and includes a revolving feature that allows BMC to borrow up to an additional $50 million. Along with the extension of the credit facility, the agreement’s term was also extended to Jan. 4, 2016 and interest rate and commitment fees were reduced, which lowered the company’s overall borrowing costs.
“This expanded credit facility provides BMC with additional financial flexibility on improved economic terms,” said Danny McQuary, CFO at 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.”
BMC’s last amended its credit facility in December 2010, when it expanded borrowing capacity to $50 million. The company is ranked No. 10 on the 2011 ProSales 100 listing with professional sales of $570 million. It operates 77 locations in nine states.