Masonite gets $250 million term loan for Endura Products purchase

By Wendy Van Sickle

Columbus, Ohio, Dec. 14 – Masonite International Corp. and Masonite Corp. entered into a credit agreement on Dec. 13 providing for a senior secured five-year delayed-draw term loan facility of $250 million, according to an 8-K filed with the Securities and Exchange Commission.

The term loan is to help fund the company’s acquisition of Endura Products.

The loan obligations are secured by a lien on substantially all of the assets owned by Masonite Corp. and its subsidiary guarantors.

The maturity date is Dec. 13, 2027. The loans are repayable in quarterly installments for a total of 15% a year.

The loans will bear interest at term SOFR plus 225 basis points. The obligation to extend credit under the loan agreement is subject to some conditions, include closing of the acquisition.

The borrower is required to maintain a maximum total leverage ratio of 4.50 to 1.00 as of the last day of each fiscal quarter of Masonite.

JPMorgan Chase Bank, NA and CIBC Capital Markets are the lead arrangers and bookrunners with JPMorgan also the administrative agent.

Additionally, on Dec. 12, Masonite amended its asset-based revolving credit facility dated Jan. 31, 2019 with Wells Fargo Bank, NA as administrative agent to extend the maturity date to Dec. 12, 2027 from Jan. 31, 2024.

Masonite is a Tampa, Fla.-based manufacturer and distributor of interior and exterior doors and door systems. Endura is a Colfax, N.C.-based manufacturer of high-performance door frames and door system components.

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