Huttig enters into new credit facility

Millwork and building materials Huttig Building Products reported that it has entered into a new $250 million senior credit facility. 

The facility has a five-year tenure and can be expanded to $325 million through an uncommitted $75 million accordion, subject to certain conditions. 

JPMorgan Chase Bank, N.A. is Administrative Agent, Joint Bookrunner and Joint Lead Arranger. Bank of America, N.A. and Fifth Third Bank, National Association are Joint Bookrunners and Joint Lead Arrangers. Regions Bank and BMO Harris Bank, N.A. are also lenders in the new facility. 

This new credit facility replaces Huttig’s existing credit facility.

“Our new credit facility will immediately provide us with increased financial flexibility as we continue to execute our strategy,” Philip Keipp, Huttig vice president and CFO, said in a statement issued by the distributor. “This agreement is reflective of our strong financial profile as we significantly strengthened our balance sheet in a challenging business environment over the past eighteen months. We are pleased with the high level of interest from the lending community while continuing our relationship with JPMorgan and Bank of America. We are also pleased with the addition of Fifth Third, Regions and BMO Harris to our lending group.”

In July, Huttig reported second sales increased nearly 29% to $274.4 million from second quarter 2020 sales of $192 million. The company also posted a net income of $14.9 million from the quarter, marking a big leap from a net income of $1.6 million for the same period last year.

Millwork sales increased 19.1% to $97.3 million in the second quarter, despite being impacted by supply chain disruptions. Building products sales increased 29.5% in the second quarter as wood product sales jumped 85.9% to $23.8 million.

Based in St. Louis, Mo., Huttig Building Products distributes materials through 25 distribution centers serving 41 states.