Trex adds $100 million revolving credit line to reduce pandemic risk

By Marisa Wong

Los Angeles, May 28 – Trex Co., Inc. entered into on Tuesday a fourth amended and restated credit agreement to its credit agreement dated Nov. 5, 2019 for an additional $100 million line of credit.

The purpose of the additional $100 million line of credit is primarily to reduce risk associated with the Covid-19 pandemic should the company need to secure additional capital to continue its strategy of accelerating the conversion of wood decking to Trex composite decking and expanding its addressable market, according to an 8-K filing with the Securities and Exchange Commission.

Under the new credit agreement, all of the material terms and conditions related to the original line of credit – the revolving A commitments – are unchanged from the original agreement. The new $100 million line of credit makes up the revolving B commitments.

Revolving B loans are available through May 26, 2022.

Interest for the revolving B commitments is equal to Libor plus 180 basis points to 275 bps, depending on the consolidated debt to consolidated EBITDA ratio.

As before, the credit agreement provides revolving A commitments of up to $250 million from Jan. 1 through June 30 of each year and a maximum amount of $200 million from July 1 through Dec. 31 of each year. The revolving A term ends Nov. 5, 2024.

BofA Securities, Inc. is lead arranger and bookrunner. Bank of America, NA is administrative agent and Wells Fargo Bank, NA is syndication agent.

Trex is a Winchester, Va.-based manufacture of wood-alternative decking, railings and other outdoor items.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.