North American manufacturer and distributor of exterior building products Associated Materials (AMI) recently announced that it has closed the series of recapitalization transactions to de-lever its balance sheet and enhance its liquidity position.

As part of the recapitalization transactions, Associated Materials and AMH New Finance, Inc. issued $250 million, 9% Senior Secured Notes due 2025, the proceeds of which are being used to provide liquidity on AMI’s balance sheet, pay down the existing balance on its asset-based loan facility, and pay fees and expenses in connection with the recapitalization transactions. In conjunction with the recapitalization transactions, the Associated Materials has also amended its ABL Facility commitment to $150 million and extended the maturity to 2024.

The transactions have reduced AMI’s net leverage to around two times its Adjusted EBITDA (as calculated in accordance with its credit agreement) for the twelve months ended fiscal June 2020 and have expanded the company’s total liquidity to in excess of $200 million.

We look forward to operating our business under this improved capital structure and are grateful for the support of all stakeholders throughout the process,” said Brian C. Strauss, president and CEO of the company.  “Our new capital structure will better support our strong operating business and set the company up for long-term success.”

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