Atkore Announces Completion of Refinancing of Senior Secured Term Loan

Rhea-AI Summary

Atkore Inc. (NYSE: ATKR) has completed the refinancing of the senior secured term loan facility of its subsidiary, Atkore International, Inc., securing a new $400 million loan maturing in 2028. This replaces the current loan due in December 2023. Interest rates include LIBOR plus 2.00% or an alternate base rate plus 1.00%. The refinancing, alongside a $400 million issuance of 4.25% Senior Notes due 2031, aims to lower the effective interest rate and bolster financial management. The existing $325 million revolving credit facility has also been extended to 2026.

Positive

• Successfully refinanced $400 million of senior secured term loan, maturing in 2028, improving financial flexibility.
• Reduction in effective interest rate, enhancing overall financial management.
• Extension of existing $325 million revolving credit facility to 2026.

Negative

• None.

Atkore Inc. (the “Company”) (NYSE: ATKR), a leading provider of electrical, safety and infrastructure solutions, today announced that it had completed the refinancing of the senior secured term loan facility of its subsidiary, Atkore International, Inc. (“AII”), which had been scheduled to mature in December 2023. The Company replaced the existing term loan facility with a new $400 million senior secured term loan facility of AII that matures in 2028. Borrowings under the new term loan facility bear interest at the rate of either LIBOR (with a floor of 0.5%) plus 2.00%, or an alternate base rate (with a floor of 1.5%) plus 1.00%. Proceeds of the new term loan facility, together with the proceeds from the issuance by the Company of $400 million of 4.25% Senior Notes due 2031 (the “Notes”) were used to fund the repayment of the existing term loan facility and to pay related fees and expenses. The remaining proceeds will be used for general corporate purposes. The Company also extended the maturity of AII’s existing $325 million asset-based revolving credit facility to 2026.

The Notes are the Company’s senior unsecured obligations and are guaranteed by each of the Company’s existing and future subsidiaries that are borrowers under or that guarantee its asset-based revolving credit facility and new term loan facility.

“We’re pleased with the successful completion of these transactions, which lower the Company’s effective interest rate while also fixing a portion of the rate structure over the next decade,” said David P. Johnson, the Company’s Chief Financial Officer. “These actions demonstrate Atkore’s continued commitment to operating with strong financial management while continuing to deliver value to our customers.”

The Notes have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws, and may not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from such registration requirements. Accordingly, the Notes were offered and sold in the United States only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to non-U.S. persons in offshore transactions outside the United States in accordance with Regulation S under the Securities Act.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, the Notes in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction.

About Atkore Inc.

The Company 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, the Company is a leading provider of electrical, safety and infrastructure solutions. To learn more, please visit www.atkore.com.

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FAQ

What recent financing activities has Atkore (ATKR) completed?

Atkore Inc. recently refinanced its senior secured term loan facility, securing a new $400 million loan that matures in 2028.

What is the interest rate on Atkore's new term loan?

The new term loan bears interest at LIBOR plus 2.00% or an alternate base rate plus 1.00%.

What are the terms of the Senior Notes issued by Atkore?

Atkore issued $400 million of 4.25% Senior Notes due 2031 as part of its financing strategy.

How has Atkore's refinancing affected its financial position?

The refinancing lowers Atkore's effective interest rate and extends the maturity of its debt, improving financial stability.

What is the duration of Atkore's revolving credit facility?

Atkore extended the maturity of its existing $325 million revolving credit facility to 2026.