84 Lumber has finalized a $225 million senior secured revolving credit facility which it will use to refinance existing debt and for general corporate purposes, the company announced on April 12. Wells Fargo Capital Finance and PNC Bank were the lead arrangers.
The new facility will give the Eighty Four, Pa.-based supplier greater financial flexibility and liquidity. GE Capital Finance was also named as a co-collateral agent and documentation agent for the facility, which is an asset-based loan.
“It's gratifying that Wells Fargo and PNC Bank, who've supported us through the depths of the housing crisis, see the progress that we have made and continue to make as the economy and housing markets recover,” said Paul Lentz, CFO of 84 Lumber.
In February 2011, the dealer needed federal help in the form of a $20 million loan to assist in paying off the remaining $40 million of a $195 million, 18% interest loan with Cerberus that, at the time, was affecting its operations. That deal, financial records released revealed that the company had been leaning heavily on bank loans for day-to-day cash while it sold dozens of facilities to help pay down its debts.