TUCKER, Ga.--(BUSINESS WIRE)--GMS Inc. (NYSE:GMS), a leading North American distributor of gypsum wallboard and suspended ceiling systems, today announced that its indirect wholly-owned subsidiary, GYP Holdings III, Corp. ("GYP III" or the "Company") has closed on the refinancing of its existing term loan. The new borrowings consist of a $481 million term loan facility due in 2021. Borrowings under the new term loan will bear interest at a floating rate based on LIBOR, with a 1.00% floor, plus 3.50%, compared to the previous term loan which had a floating rate based on LIBOR, with a 1.00% floor, plus 3.75%. Net proceeds plus cash on hand were used to repay its existing first lien term loan of $381 million and will be applied to repay approximately $99 million of loans under its asset based revolving credit facility.
Doug Goforth, Chief Financial Officer of GMS, stated, “We are pleased with the strong performance of our business which has allowed us to expand our capital base and reduce the interest expense on our first lien debt with this attractive source of financing. With the enhanced flexibility on our revolver we are now even better positioned to continue sourcing and integrating select acquisitions to further strengthen our leadership positions throughout the U.S.”
Founded in 1971, GMS operates a network of more than 195 distribution centers across the United States. GMS’ extensive product offering of wallboard, suspended ceilings systems, or ceilings, and complementary interior construction products is designed to provide a comprehensive one-stop-shop for our core customer, the interior contractor who installs these products in commercial and residential buildings.
For more information about GMS, visit www.gms.com.
Forward‐Looking Statements and Information:
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