Trex restates facility, adding new $150 million revolver

By William Gullotti

Buffalo, N.Y., Dec. 23 – Trex Co., Inc. as borrower and Trex Commercial Products, Inc. (TCP) as guarantor entered into a first amendment to the $400 million revolving facility signed May 18 with Bank of America, NA as administrative agent on Dec. 22, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides the company with a revolving B loan consisting of one or more revolving loans in a collective maximum principal amount of $150 million throughout the term, which ends Dec. 22, 2024.

Borrowings from revolving B loan bear interest at term SOFR plus a spread ranging from 120 basis points to 215 bps. There is also a commitment fee that ranges from 37.5 bps to 45 bps.

The spread and fee are determined by the company’s ratio of consolidated debt to consolidated EBITDA.

The original revolver, which provided the company with commitments totaling $400 million ending May 18, 2027, was restated as revolving A loan under its original terms.

As previously reported, revolving A loan borrowings bear interest at term SOFR plus a spread ranging from 80 bps to 180 bps. There is also a fee that ranges from 8 bps to 20 bps. The spread and fee will continue to be determined by the same ratio as the new revolving loan.

The restated facility has a $60 million sublimit for letters of credit and a $20 million sublimit for swingline loans. The sublimits are not segregated by revolver.

The security and pledge agreement remains unchanged except that it now secures both revolving loans in the facility.

After the effective date, the company and BofA Securities, Inc., as a sustainability coordinator, will be entitled to establish specified key performance indicators with respect to environmental, social and governance targets of the company and its subsidiaries, with some pricing adjustments possible based on those indicators.

Proceeds will continue to be used for raising working capital and supporting general business operations.

In addition to serving as administrative agent, BofA is also the swingline lender and letter of credit issuer.

BofA Securities, Inc. is lead arranger and bookrunner.

TD Bank, NA replaced Wells Fargo Bank, NA as syndication agent. Wells Fargo is still a lender along with Regions Bank and PNC Bank, NA.

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

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