Citing year-over-year sales growth in excess of 30% for the past four quarters, Builders FirstSource (BFS) Tuesday announced it would increase the principal of its first-lien term loan by $65 million at 99.5%, improving the company's liquidity position in the wake of continued growth. The transaction will provide a total of $93 million in incremental liquidity, company officials said in a statement.
BFS chief financial officer Chad Crow added that the transaction also gives the dealer flexibility to refinance the firm by improving its capital structure and increasing operating cash while reducing the amount of cash the company will need to keep on hand as collateral for credit. "Net cash received from the additional principal of approximately $60 million, along with the $20 million reduction in the minimum cash requirement and the expected $13 million reduction in cash collateral on our letter of credit's, will increase the company's net liquidity by approximately $93 million," he said.
Crow said the company plans to begin FY 2013 with $130 million in cash and $115 million of net liquidity, with the likely addition of an additional $13 million in liquid assets within the next 60 days upon completion of certain conditions related to the new credit facility.
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