HNI gets $440 million bridge loan commitment for Kimball purchase

By Sara Rosenberg

New York, March 8 – HNI Corp. has a commitment for $440 million of bridge loan financing to support its acquisition of Kimball International Inc., according to a company presentation.

Permanent financing for the transaction is expected to include a new unsecured term loan and an amended unsecured revolving credit facility, the presentation said.

Wells Fargo and US Bank provided the debt commitment.

Pro forma closing net leverage is expected to be 2.3x LTM June 30, 2023 estimated adjusted EBITDA, inclusive of synergies.

Under the agreement, Kimball is being bought for $9.00 in cash and 0.1301 of a share of HNI common stock for each share of Kimball common stock. The cash and stock transaction is valued at about $485 million.

Closing is expected by mid-year, subject to the approval of Kimball shareholders, the receipt of required regulatory approval, and the satisfaction of other customary conditions.

HNI is a Muscatine, Iowa-based manufacturer of workplace furnishings and residential building products. Kimball is a Jasper, Ind.-based commercial furnishings company.

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