Patrick Industries expands credit facility to $360 million, adds lender

By Marisa Wong

Morgantown, W.Va., Aug. 1 – Patrick Industries, Inc. entered into a second amendment to its $300 million five-year senior secured credit facility on July 26 to expand the credit facility to $360 million by expanding the revolving credit line to $269.4 million from $225 million and the term loan to $90.6 million from $75 million, according to an 8-K filing with the Securities and Exchange Commission.

The facility was originally amended and restated on April 28, 2015 with Wells Fargo Bank, NA as administrative agent and a lender and Fifth-Third Bank, Key Bank NA, Bank of America, NA and Lake City Bank as participants. The facility was increased to $300 million from $250 million in August 2015.

The initial term loan had repayment installments of roughly $2.7 million per quarter, with the remaining balance due at maturity. Following the latest expansion of the term loan, the quarterly repayment installments were increased to about $3.9 million beginning on Sept. 30, with the remaining balance due at maturity.

In addition, 1st Source Bank was added as an additional participant.

“We continue to position ourselves to be able to execute on our capital allocation strategy and this amended credit agreement provides us with increased liquidity and future capacity to support the company’s long-term strategic initiatives, our organic and acquisition-related growth objectives, and our ongoing working capital requirements,” president Andy Nemeth said in a press release.

Patrick Industries is an Elkhart, Ind.-based manufacturer of component products and distributor of building products for recreational vehicle, manufactured housing, kitchen cabinet, office and household furniture, fixtures and commercial furnishings, marine and other industrial markets.

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