Patrick Industries, Inc. Announces Closing of $500 Million Senior Notes Offering and New Credit Facility
Patrick Industries (NASDAQ: PATK) has completed its private offering of $500 million in Senior Notes due 2032 with a 6.375% interest rate. The company also established a new $1.0 billion senior secured credit facility, comprising an $875 million revolving credit facility and a $125 million term loan, maturing in October 2029. The proceeds will be used to redeem $300 million of 7.500% Senior Notes due 2027, repay existing credit facility borrowings, and cover related expenses. This refinancing replaces the company's previous credit facility that was set to mature in August 2027.
Patrick Industries (NASDAQ: PATK) ha completato la sua offerta privata di 500 milioni di dollari in Note Seniores con scadenza nel 2032 a un tasso di interesse del 6,375%. L'azienda ha anche istituito un nuovo credito garantito senior di 1,0 miliardo di dollari, composto da una linea di credito revolving di 875 milioni di dollari e un prestito a termine di 125 milioni di dollari, in scadenza nell'ottobre 2029. I proventi saranno utilizzati per riscattare 300 milioni di dollari di Note Seniores al 7,500% in scadenza nel 2027, rimborsare le linee di credito esistenti e coprire le spese correlate. Questa rifinanziamento sostituisce la precedente linea di credito dell'azienda, la cui scadenza era prevista per agosto 2027.
Patrick Industries (NASDAQ: PATK) ha completado su oferta privada de 500 millones de dólares en Notas Senior con vencimiento en 2032 y una tasa de interés del 6,375%. La compañía también estableció una nueva facilidad de crédito garantizada senior de 1,0 mil millones de dólares, que comprende una línea de crédito revolving de 875 millones de dólares y un préstamo a plazo de 125 millones de dólares, con vencimiento en octubre de 2029. Los fondos se utilizarán para canjear 300 millones de dólares en Notas Senior al 7,500% con vencimiento en 2027, reembolsar los préstamos existentes de la línea de crédito y cubrir los gastos relacionados. Este refinanciamiento reemplaza la facilidad de crédito anterior de la compañía, que iba a vencer en agosto de 2027.
패트릭 산업 (NASDAQ: PATK)이 2032년 만기 6.375%의 이자율로 5억 달러 규모의 선순위 채권을 사모로 발행했습니다. 회사는 또한 10억 달러 규모의 보안 선순위 신용 시설을 설정했으며, 이는 8억 7,500만 달러의 리볼빙 신용 시설과 1억 2,500만 달러의 만기대출로 구성되어 있으며, 2029년 10월에 만기가 됩니다. 이 자금은 2027년 만기 7.500% 선순위 채권 3억 달러를 환매하고 기존 신용 시설 차입금을 상환하며 관련 비용을 충당하는 데 사용될 것입니다. 이번 재융자는 2027년 8월에 만기가 예정된 회사의 이전 신용 시설을 대체합니다.
Patrick Industries (NASDAQ: PATK) a complété son offre privée de 500 millions de dollars en Obligations Senior arrivant à échéance en 2032 avec un taux d'intérêt de 6,375 %. L'entreprise a également mis en place une nouvelle facilité de crédit senior sécurisée de 1,0 milliard de dollars, composée d'une facilité de crédit revolving de 875 millions de dollars et d'un prêt à terme de 125 millions de dollars, arrivant à échéance en octobre 2029. Les produits seront utilisés pour racheter 300 millions de dollars d'Obligations Senior à 7,500 % arrivant à échéance en 2027, rembourser les emprunts de la facilité de crédit existante et couvrir les dépenses associées. Ce refinancement remplace la précédente facilité de crédit de l'entreprise qui devait arriver à échéance en août 2027.
Patrick Industries (NASDAQ: PATK) hat seine Privatplatzierung von 500 Millionen Dollar in Senior Notes mit Fälligkeit im Jahr 2032 und einem Zinssatz von 6,375% abgeschlossen. Das Unternehmen hat auch eine neue Senioren-gesicherte Kreditfazilität in Höhe von 1,0 Milliarde Dollar eingerichtet, die aus einer revolvierenden Kreditfazilität über 875 Millionen Dollar und einem Terminkredit über 125 Millionen Dollar besteht, der im Oktober 2029 fällig wird. Die Erlöse werden verwendet, um 300 Millionen Dollar an 7,500% Senior Notes mit Fälligkeit 2027 einzulösen, vorhandene Kreditfazilitäten zurückzuzahlen und damit verbundene Kosten zu decken. Diese Refinanzierung ersetzt die vorherige Kreditfazilität des Unternehmens, die im August 2027 fällig werden sollte.
- Secured $500 million in new financing at a lower 6.375% interest rate compared to previous 7.500%
- Established larger $1.0 billion credit facility extending maturity to 2029
- Improved debt structure with more favorable terms
- Increased total debt exposure with $500 million notes offering
- Additional interest expenses from new debt issuance
Insights
This debt refinancing represents a significant financial optimization for Patrick Industries. The new
- Lower interest costs by replacing
$300 million of7.500% notes with lower-rate debt - Extended debt maturity profile from 2027 to 2029/2032
- Enhanced liquidity through the larger
$875 million revolving facility
The improved capital structure strengthens Patrick's financial flexibility while reducing interest expenses. The successful placement of notes at favorable terms indicates strong market confidence in the company's creditworthiness. The expanded credit facility provides ample resources for operational needs and potential strategic opportunities.
This comprehensive refinancing demonstrates excellent timing and execution by management. The transaction achieves three strategic objectives:
- Cost optimization through lower interest rates in a challenging rate environment
- Risk reduction by extending maturities and diversifying funding sources
- Enhanced financial flexibility with significantly increased revolving credit capacity
The larger facility size suggests management anticipates growth opportunities or wants a stronger buffer against market volatility. The successful placement of
On October 24, 2024, the Company amended and restated its credit agreement to establish a new
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider serving the RV, Marine, Powersports and Housing markets. Since 1959, Patrick has empowered manufacturers and outdoor enthusiasts to achieve next-level recreation experiences. Our customer-focused approach brings together design, manufacturing, distribution, and transportation in a full solutions model that defines us as a trusted partner. Patrick is home to more than 85 leading brands, all united by a commitment to quality, customer service, and innovation. Headquartered in
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements within the meaning of Private Securities Litigation Reform Act of 1995 that are forward-looking in nature, including, without limitation, the use of proceeds of the Notes offering and the new senior secured credit facility. The forward-looking statements are based on current expectations and our actual results may differ materially from those projected in any forward-looking statement. There can be no assurance that any forward-looking statement will be realized or that actual results will not be significantly different from that set forth in such forward-looking statement. Factors that could cause actual results to differ materially from those in forward-looking statements included in this press release include, without limitation: adverse economic and business conditions, including cyclicality and seasonality in the industries we sell our products; the financial condition of our customers or suppliers; the loss of a significant customer; changes in consumer preferences; declines in the level of unit shipments or reduction in growth in the markets we serve; the availability of retail and wholesale financing for RVs, watercraft and powersports products, and residential and manufactured homes; pricing pressures due to competition; costs and availability of raw materials, commodities and energy and transportation; supply chain issues, including financial problems of manufacturers or suppliers and shortages of adequate materials or manufacturing capacity; the challenges and risks associated with doing business internationally; challenges and risks associated with importing products, such as the imposition of duties, tariffs or trade restrictions; the ability to manage our working capital, including inventory and inventory obsolescence; the availability and costs of labor and production facilities and the impact of labor shortages; fuel shortages or high prices for fuel; any interruptions or disruptions in production at one of our key facilities; challenges with integrating acquired businesses; the impact of the consolidation and/or closure of all or part of a manufacturing or distribution facility; an impairment of assets, including goodwill and other long-lived assets; an inability to attract and retain qualified executive officers and key personnel; the effects of union organizing activities; the impact of governmental and environmental regulations, and our inability to comply with them; changes to federal, state, local or certain international tax regulations; unusual or significant litigation, governmental investigations, or adverse publicity arising out of alleged defects in products, services, perceived environmental impacts, or otherwise; public health emergencies or pandemics, such as the COVID-19 pandemic; our level of indebtedness; our inability to comply with the covenants contained in the existing senior secured credit facility or the new senior secured credit facility; an inability to access capital when needed; the settlement or conversion of our notes; fluctuations in the market price for our common stock; an inability of our information technology systems to perform adequately; any disruptions in our business due to an IT failure, a cyber-incident or a data breach; any adverse results from our evaluation of our internal controls over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions in our Articles of Incorporation and Amended and Restated By-laws that may delay, defer or prevent a change in control; adverse conditions in the insurance markets; and the impact on our business resulting from wars and military conflicts, such as war in
The Company does not undertake to publicly update or revise any forward-looking statements. Information about certain risks that could affect our business and cause actual results to differ from those express or implied in the forward-looking statements are contained in the section entitled "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's Forms 10-Q for subsequent quarterly periods, which are filed with the Securities and Exchange Commission ("SEC") and are available on the SEC's website at www.sec.gov. Each forward-looking statement speaks only as of the date of this press release, and we undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date on which it is made. Prospective purchasers are cautioned not to place undue reliance on these forward-looking statements.
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SOURCE Patrick Industries, Inc.
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