CHICAGO–(BUSINESS WIRE)–The AZEK Company Inc. (NYSE: AZEK) (“AZEK” or the “Company”), the leading manufacturer of beautiful, low-maintenance, and environmentally friendly outdoor products, including TimberTech® terrace, Versatex® and AZEK Trim®, and StruXure™ Pergolas, today announced that it has entered into a new senior term credit agreement (the “New Credit Agreement”) with Bank of America, NA, as administrative agent and of guarantee, and the lenders and financial institutions parties thereto. The New Credit Agreement provided the Company with a $600 million senior term loan facility (the “Credit Facility”), the proceeds of which were used, among other things, to prepay all obligations under the company’s existing senior term loan. credit agreement, which was scheduled to expire in May 2024 (the “Existing Credit Agreement”). As part of the conclusion of the new credit agreement, the existing credit agreement was terminated.
The credit facility will mature in April 2029, subject to acceleration or early repayment. Beginning December 31, 2022, the credit facility will be amortized in equal quarterly installments of 0.25% of the aggregate principal amount of outstanding loans, subject to reduction for certain prepayments.
The interest rate applicable to loans under the Credit Facility will be based on the forward SOFR for the applicable interest period at AZEK’s election, 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 Peter Clifford, AZEK’s Chief Financial Officer. . “We believe the successful completion of this transaction on favorable terms reflects 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 represents an improvement from its previous rating.
About AZEK® Company
The AZEK Company Inc. (NYSE: AZEK) is the industry leader in designing and manufacturing beautiful, low-maintenance, and environmentally friendly outdoor products, including TimberTech® terrace and Versatex® AZEK Trim® and StruXure™ pergolas. Consistently recognized as the market leader in innovation, quality and aesthetics, the products in the AZEK line are made from 100% recycled materials and primarily replace wood on the exterior of homes, providing a solution sustainable, ecological and elegant for consumers. Leveraging the talents of its approximately 2,000 employees and strong relationships throughout its value chain, AZEK is committed to accelerating the use of recycled materials in the manufacture of its innovative products, maintaining millions of pounds of waste out of landfills each year, and revolutionizing the industry to create a more sustainable future. Based in Chicago, Illinois, the company operates manufacturing facilities in Ohio, Pennsylvania, Georgia and Minnesota, and recently announced the opening of a new factory in Boise, Idaho. For more information, please visit azekco.com.
Caution 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”, “objective” and similar expressions. . Financial information and projected performance are forward-looking statements. Other forward-looking statements may include, but are not limited to, statements regarding our future financial performance, liquidity, and ability to secure or repay our existing debt and obtain additional financing in the future. The Company bases its forward-looking statements on information available to it as of the date of this release and undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of changes in circumstances, new information , future events or otherwise. , unless otherwise 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 other risks and uncertainties discussed in subsequent reports that the Company files from time to time with the Securities and Exchange Commission. Although we have attempted to identify important factors that could cause actual results or events to differ from those described in these forward-looking statements, there may be other factors that could cause actual results or events to differ. differ from those anticipated, estimated or expected. Given these uncertainties, investors are cautioned not to place undue reliance on our forward-looking statements.