Universal Forest Products (UFPI) Tuesday announced that it negotiated a credit facility totaling $75 million through which it will refinance $40 million in existing debt while using the rest to fund growth, including the acquisition of commercial casework manufacturer Custom Caseworks expected to close Dec. 31.
“These are exciting times for the companies of Universal. With these successful transactions, we’ve added yet another thriving company to our business portfolio, and we’re armed with the capital necessary to continue to grow our company and our opportunity,” UFPI's CEO, Matthew Missad, said in a statement.
The agreement with lender Prudential includes issuance of unsecured ten-year Series A senior notes at 3.89% interest to total $35 million, and unsecured 12-year Series B senior notes at 3.98% interest totally $40 million, with the proceeds of both being used by UFPI to refinance its existing Series 2002-A senior notes worth $40 million at a 6.16% interest rate. The company also will pay down its revolving credit line used in November to purchase Malaga, Wash.-based Nepa Pallet and Container Co. as well as finance the current acquisition of Sauk Rapids, Minn.-based Custom Caseworks.