The AZEK Company Announces Term Loan Refinancing
May 03 2022 - 3:15PM
Business Wire
The AZEK Company Inc. (NYSE: AZEK) ("AZEK" or the “Company”),
the industry-leading manufacturer of beautiful, low-maintenance and
environmentally sustainable outdoor living products, including
TimberTech® decking, Versatex® and AZEK Trim®, and StruXure™
pergolas, today announced the entry into a new first lien term loan
credit agreement (the “New Credit Agreement”) with Bank of America,
N.A., as administrative agent and collateral agent, and the lenders
and financial institutions party thereto. The New Credit Agreement
provided the Company with a $600 million first lien term loan
facility (the “Credit Facility”), the proceeds of which were
applied, among other uses, to prepay the obligations in full under
the Company’s existing first lien term loan credit agreement, which
was due in May 2024 (the “Existing Credit Agreement”). In
connection with the entry into the New Credit Agreement, the
Existing Credit Agreement was terminated.
The Credit Facility will mature in April 2029, subject to
acceleration or prepayment. Commencing on December 31, 2022, the
Credit Facility will amortize in equal quarterly installments of
0.25% of the aggregate principal amount of the loans outstanding,
subject to reduction for certain prepayments.
The interest rate applicable to loans under the Credit Facility
will be based on Term SOFR for the applicable interest period at
AZEK’s option, plus an applicable margin of 2.50%.
“We are pleased to announce the closing of this refinancing
which provides additional liquidity, strengthens AZEK’s financial
position and improves our capital structure to support our future
growth ambitions,” said AZEK CFO Peter Clifford. “We believe the
successful completion of this transaction on favorable terms
reflects the recognition by the credit market of the significant
achievements we have made in executing our growth strategy as well
as our continued maturation as a public company.”
In connection with the closing of the Credit Facility, the
Company also received a corporate credit rating of BB- from S&P
Global Ratings, which is an upgrade from its prior rating.
About The AZEK® Company
The AZEK Company Inc. (NYSE: AZEK) is the industry-leading
designer and manufacturer of beautiful, low maintenance and
environmentally sustainable outdoor living products, including
TimberTech® decking and Versatex® AZEK Trim® and StruXure™
pergolas. Consistently recognized as the market leader in
innovation, quality and aesthetics, products across AZEK’s
portfolio are made from up to 100% recycled material and primarily
replace wood on the outside of homes, providing a long-lasting,
eco-friendly, and stylish solution to consumers. Leveraging the
talents of its approximately 2,000 employees and the strength of
relationships across its value chain, The AZEK Company is committed
to accelerating the use of recycled material in the manufacturing
of its innovative products, keeping millions of pounds of waste out
of landfills each year, and revolutionizing the industry to create
a more sustainable future. Headquartered in Chicago, Illinois, the
company operates manufacturing facilities in Ohio, Pennsylvania,
Georgia, and Minnesota, and recently announced a new facility will
open in Boise, Idaho. For additional information, please visit
azekco.com.
Cautionary Note Regarding Forward-Looking Statements
This release contains or refers to certain forward-looking
statements within the meaning of the federal securities laws and
subject to the "safe harbor" protections thereunder.
Forward-looking statements are statements about future events and
are based on our current expectations. These forward-looking
statements may be identified by the words “believe,” “hope,”
"expect," "intend," "will," "target," “anticipate,” "goal" and
similar expressions. Projected financial information and
performance are forward-looking statements. Other forward-looking
statements may include, without limitation, statements with respect
to our future financial performance, liquidity and our ability to
service or repay our existing indebtedness and to secure additional
financing in the future. The Company bases its forward-looking
statements on information available to it on the date of this
release and undertakes no obligation to publicly update or revise
any forward-looking statements, whether as a result of changed
circumstances, new information, future events, or otherwise, except
as may otherwise be required by law. Actual future events could
also differ materially due to numerous factors that involve
substantial known and unknown risks and uncertainties including,
among other things, the risks and uncertainties set forth under
"Risk Factors" and elsewhere in the Company's reports on Form 10-K
and Form 10-Q and the other risks and uncertainties discussed in
any subsequent reports that the Company files with the Securities
and Exchange Commission from time to time. Although we have
attempted to identify those material factors that could cause
actual results or events to differ from those described in such
forward-looking statements, there may be other factors that could
cause actual results or events to differ from those anticipated,
estimated or intended. Given these uncertainties, investors are
cautioned not to place undue reliance on our forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220503005538/en/
Investor Contact: Eric Robinson 312-809-1093
ir@azekco.com
Media Contact: Rachel Mihulka 402-980-9603
AZEKquestions@zenogroup.com
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