American Woodmark Corporation Announces Closing of Amended and Restated Credit Facility and Satisfaction of Conditions Precedent to Full Redemption of 4.875% Senior Notes Due 2026

Rhea-AI Summary

American Woodmark Corporation (NASDAQ: AMWD) has amended its senior secured credit facility, securing a $500 million revolving loan and a $250 million term loan, both maturing on April 22, 2026. The company utilized these funds to fully repay its previous credit facility and to facilitate the redemption of its 4.875% Senior Notes due 2026. This new facility is guaranteed by the company’s domestic subsidiaries and is secured by personal property. As of January 31, 2021, the company operates seventeen manufacturing facilities across the U.S. and Mexico.

Positive

• Successfully entered into a $500 million revolving loan facility and a $250 million term loan.
• Proceeds used for full repayment of previous credit facility and upcoming note redemption, strengthening financial position.
• New credit facility has a maturity date extended to April 2026, providing ample liquidity.

Negative

• Entire $250 million term loan borrowed at closing indicates higher leverage.
• Financial dependence on debt repayment may raise risks in volatile markets.

American Woodmark Corporation (NASDAQ: AMWD) (the “Company”) today announced that it has entered into an amended and restated senior secured credit facility consisting of a $500 million revolving loan facility and a $250 million term loan facility. Both facilities mature on April 22, 2026. At closing, the Company borrowed the entire $250 million available under the term loan facility and approximately $264 million under the revolving loan facility. The Company used the proceeds from these borrowings, along with available cash on hand, to repay in full the indebtedness outstanding under the Company’s previous senior secured credit facility, fund the aggregate redemption price for the previously announced conditional full redemption of the Company’s 4.875% Senior Notes due 2026 scheduled to occur on April 26, 2021 (the “Redemption”) and pay related fees and expenses.

The amended and restated credit facility is guaranteed by each of the Company’s domestic subsidiaries and secured by a pledge of substantially all of the Company’s and each of its domestic subsidiary’s personal property. The Company’s previous senior secured credit facility was scheduled to mature in December 2022.

In connection with the closing of the amended and restated credit facility, the Company also announced that the conditions precedent to the Redemption have been satisfied.

About American Woodmark Corporation

American Woodmark Corporation manufactures and distributes kitchen, bath and home organization products for the remodeling and new home construction markets. Its products are sold on a national basis directly to home centers, builders and through a network of independent dealers and distributors. At January 31, 2021, the Company operated seventeen manufacturing facilities in the United States and Mexico and eight primary service centers and one distribution center located throughout the United States.

Safe harbor statement under the Private Securities Litigation Reform Act of 1995: All forward-looking statements made by the Company involve material risks and uncertainties and are subject to change based on factors that may be beyond the Company's control. Accordingly, the Company's future performance and financial results may differ materially from those expressed or implied in any such forward-looking statements. Such factors include, but are not limited to, those described in the Company's filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements even if experience or future changes make it clear that any projected results expressed or implied therein will not be realized.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210422005752/en/

FAQ

What are the details of American Woodmark's new credit facility?

American Woodmark has an amended credit facility of $500 million revolving loan and a $250 million term loan, maturing on April 22, 2026.

How much debt did American Woodmark repay with the new loan?

The company used proceeds from the new facility to fully repay its previous senior secured credit facility.

What is the maturity date for American Woodmark's new loans?

Both the revolving and term loan facilities mature on April 22, 2026.

What will happen to American Woodmark's 4.875% Senior Notes due 2026?

The conditions for the redemption of the 4.875% Senior Notes have been satisfied, with redemption scheduled for April 26, 2021.