Beacon Roofing Supply, Peabody, Mass., is refinancing $515 million in loans with a five-year, senior secured credit facility comprising U.S. and Canadian advances of $550 million and CA$15 million ($15.1 million), respectively, the company announced Thursday.

The new arrangement, administered by Wells Fargo Securities, will set interest rates equal to the LIBOR benchmark plus a margin—initially 1.75% annually, but it can range from 1.50% to 2.50% based on the company’s total leverage ratio. These lower interest rates will make the company more liquid while offering the flexibility to more aggressively pursue growth, said David Grace, Beacon’s executive vice president and chief financial officer, in a release. The previous facilities were provided through GE Antares and an affiliate.

"The time for us to refinance was ideal because interest rates are at historical low levels,” Grace said. “There was also a very high level of interest from lenders because of our successful history of growth and profitability. This credit facility is a significant milestone in Beacon’s history.”

The roofing products distributor reported strong profits for the first quarter 2012, with a 90% increase in net income over the year-ago period to reach $19.1 million; the company credits higher sales and gross margin rate offset in part by higher operating expenses and a higher income tax provision for this growth. Net sales for the quarter jumped 21% to $489.9 million over first quarter 2011. Among the company’s segments, quarterly sales of residential roofing products grew by one third to $233.5 million from the year-ago period; non-residential-roofing-product sales grew by 16% to $194.2 million, and sales of complementary building products remained about the same at $61 million, both for the same period.