Beacon Roofing Supply is electing to draw down approximately $725 million from its revolving credit facility to increase the company’s cash position and preserve financial flexibility. The distributor said the move was made in light of current uncertainty in global markets as a result of the coronavirus pandemic. After the draw, the company will maintain approximately $185 million of additional capacity on its credit revolver.
“The health and safety of our employees, customers, and communities remains our foremost priority during this most unusual period,” Beacon president and CEO Julian Francis said in a public statement. “It is also our obligation to be good stewards of the company’s financial assets. Our outstanding credit facility provides Beacon considerable financial flexibility to manage our balance sheet, and our draw on our ABL revolver exemplifies this.”
Francis said the company is electing to have additional cash on hand in the event of a material downturn in overall business operations as a result of the ongoing health crisis. Beacon’s businesses have been deemed essential everywhere and the distributor continues to remain open in all 50 states and Canada, according to Francis.
Herndon, Va.-based Beacon distributes roofing materials and complementary building products. The company operates over 500 branches throughout all 50 states in the United States and six Canadian provinces. The distributor was the third largest company on the 2019 ProSales 100 list.
