Tecnoglass lifts revolver to $150 million with better pricing

By Marisa Wong

Los Angeles, Nov. 15 – Tecnoglass, Inc. said it amended its senior secured revolving credit facility to increase the borrowing capacity under its committed line of credit to $150 million from $50 million.

Tecnoglass also amended the revolver to reduce borrowing costs by 130 basis points and extend the initial maturity date by one year to the end of 2026, according to a press release.

Borrowings now bear interest at Libor plus a spread of 175 basis points, based on the company’s net leverage ratio, with no Libor floor, compared to a prior rate of Libor plus 250 bps with 0.75% Libor floor.

The company expects the amendments to provide about $3 million of incremental interest expense savings on an annual basis at current outstanding borrowings.

Chief financial officer Santiago Giraldo said in the release, “This transaction, which was widely oversubscribed, reduces our cost of capital while significantly enhancing our liquidity and financial flexibility.

“Through this refinancing, we now estimate total annual savings of approximately $15 million at current levels of outstanding borrowings, since entering into our inaugural US Bank syndicated facility in October of 2020,” Giraldo said.

“The syndicate composition and the financial costs achieved in this transaction validate the success of our strategy as a ‘U.S. centric’ company,” Giraldo added.

The facility was led by PNC Bank NA as administrative agent, with Citizens Bank NA, BBVA USA, CIT Bank and Wells Fargo Bank NA as joint lead arrangers.

Tecnoglass is a Barranquilla, Colombia-based manufacturer of architectural glass, windows and associated aluminum products for the global residential and commercial construction industries.

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