Atkore Announces a Proposed Refinancing of Existing Senior Secured Term Loan

Rhea-AI Summary

Atkore Inc. (NYSE: ATKR) announced a proposed refinancing of its subsidiary's existing senior secured term loan due December 2023. The company aims to establish a new term loan facility of around $400 million maturing in 2028. Proceeds will fund the repayment of the existing loan, cover related expenses, and serve general corporate purposes. Additionally, Atkore is seeking to extend the maturity of a $325 million asset-based credit facility to 2026. The refinancing is subject to lender negotiations and market conditions.

Positive

• Proposed new term loan facility of approximately $400 million maturing in 2028.
• Intended use of proceeds includes repayment of existing debt, indicating financial management.

Negative

• Refinancing is subject to negotiation and market conditions, introducing uncertainty.
• Current loan matures in December 2023, which may present short-term liquidity risk.

Atkore Inc. (the “Company”) (NYSE: ATKR), a leading provider of electrical, safety and infrastructure solutions, today announced a proposed refinancing of the existing senior secured term loan facility of its subsidiary, Atkore International, Inc. (“AII”), which currently matures in December 2023. The Company intends to replace the existing term loan facility with a new term loan facility of approximately $400 million that matures in 2028. Proceeds of the new term loan facility, together with an expected additional unsecured debt financing by the Company, will be used to fund the repayment of the existing term loan facility, to pay related fees and expenses and for general corporate purposes. The Company is also seeking to extend the maturity of AII’s existing $325 million asset based credit facility to 2026.

The proposed refinancing transaction is subject to negotiation with lenders and market and other conditions. As such, there can be no assurance as to whether or when the Company will be able to successfully complete the refinancing transaction on the terms described above or at all.

About Atkore Inc.

Atkore is forging a future where our employees, customers, suppliers, shareholders and communities are building better together – a future focused on serving the customer and powering and protecting the world. With a network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions. To learn more, please visit www.atkore.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005269/en/

FAQ

What is Atkore Inc.'s proposed refinancing plan for its debt?

Atkore Inc. plans to refinance its existing senior secured term loan with a new facility of approximately $400 million maturing in 2028.

What is the current maturity date of Atkore's senior secured term loan?

The current senior secured term loan matures in December 2023.

How will Atkore use the proceeds from the new term loan facility?

The proceeds will be used to repay the existing term loan, pay related expenses, and for general corporate purposes.

What is the status of Atkore's asset-based credit facility?

Atkore is seeking to extend the maturity of its $325 million asset-based credit facility to 2026.

What are the risks associated with Atkore's refinancing plan?

The refinancing is subject to negotiation with lenders and market conditions, creating uncertainty for the company.