Quanex Building Products Announces Amended and Restated Credit Facility

Rhea-AI Summary

Quanex Building Products Corporation (NYSE:NX) has announced an amended credit facility, extending the maturity of its $325 million revolver by five years to July 2027. The facility's interest rates will vary based on the company's net leverage ratio, with existing borrowings of approximately $58 million moving to this new structure. CFO Scott Zuehlke highlighted that this development provides the company with flexibility to fund growth and maintain a strong balance sheet, positioning it to create more value for shareholders.

Positive

• Extension of credit facility maturity to July 2027.
• Maintained a strong balance sheet.
• Flexibility to support business growth.

Negative

• None.

HOUSTON, TEXAS, July 06, 2022 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation (NYSE:NX) (“Quanex” or the “Company”) today announced that it has entered into a second amended and restated credit facility (the “Amended Credit Facility”).   

The Amended Credit Facility extends the maturity date of the existing $325 million revolver by five years to July 2027.  Borrowings under the Amended Credit Facility will bear a tiered interest rate based on Quanex’s consolidated net leverage ratio.  At the time of closing, existing borrowings transitioned to the Amended Credit Facility totaled approximately $58 million.

Scott Zuehlke, Senior Vice President - Chief Financial Officer and Treasurer, commented, “The Amended Credit Facility extends the maturity date on our outstanding debt by five years and grants us the flexibility necessary to continue to fund and grow our business.  Our balance sheet is strong, and we are well positioned to execute on our plan with a focus on creating further value for shareholders.  We are also thankful for our longstanding banking relationships and appreciate the support.”

Wells Fargo Securities, LLC, and BofA Securities, Inc. served as the Joint Lead Arrangers and Joint Bookrunners for the Amended Credit Facility with Wells Fargo Bank, National Association serving as Administrative Agent.

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.  Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.

FAQ

What was announced by Quanex Building Products Corporation on July 6, 2022?

Quanex announced an amended credit facility extending the maturity of its $325 million revolver to July 2027.

How much is the existing borrowing under the amended credit facility for NX?

Existing borrowings under the amended credit facility total approximately $58 million.

What impact does the amended credit facility have on NX's debt management?

The amended credit facility allows for extended maturity and tiered interest rates based on the company's net leverage ratio, providing more flexibility in debt management.

Who were the joint lead arrangers for the NX amended credit facility?

Wells Fargo Securities, LLC, and BofA Securities, Inc. served as the Joint Lead Arrangers for the amended credit facility.