Patrick Industries, Inc. amended its credit agreement to expand its existing senior secured credit facility to $925 million from $700 million.
The expanded credit facility is comprised of a $775 million revolving credit facility and a $150 million term loan. The maturity date for borrowings under the credit agreement was extended to August 2027 from April 2026.
“We are excited to close the expansion and maturity extension of our credit facility, bolstering our already nimble and flexible posture while reinforcing our ability to execute on our business strategy,” said Andy Nemeth, Patrick CEO. “Our credit facility is provided by a world-class group of financial institutions, and we appreciate their support and partnership as we continue to grow and diversify our business and drive shareholder value.”
Base interest rates for borrowings under the credit agreement were changed to the Secured Overnight Financing Rate (SOFR) from London Interbank Offered Rate (LIBOR). LIBOR rates are no longer used to issue new U.S. loans, beginning in 2022, after a loss of trust in the benchmark rate following post-2008 scandals, Forbes reported.
Other material provisions remained unchanged.
Patrick Industries supplies components for the leisure lifestyle and housing markets. Founded in 1959, Patrick is based in Elkhart, Indiana, with over 12,000 employees across the United States.
