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Associated Materials completes recapitalization

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Associated Materials completes recapitalization

CUYAHOGA FALLS, Ohio — Associated Materials, a North American manufacturer and distributor of exterior building products with over $1.3 billion in annual sales, announced that it has closed the series of recapitalization transactions (that were previously announced on Aug. 3) to significantly de-lever its balance sheet and enhance its liquidity position.

As part of the recapitalization transactions, Associated Materials, LLC and AMH New Finance, Inc. issued $250.0 million 9% Senior Secured Notes due 2025, the proceeds of which are being used to provide liquidity on the Company’s balance sheet, pay down the existing balance on its asset-based loan facility, and pay fees and expenses in connection with the recapitalization transactions, the company said in a press release. In conjunction with the recapitalization transactions, the company has also amended its ABL Facility commitment to $150 million and extended the maturity to 2024.

The transactions have reduced AMI’s net leverage to around two times its adjusted EBITDA (as calculated in accordance with its credit agreement) for the 12 months ended fiscal June 2020 and have expanded the company’s total liquidity to in excess of $200 million.

“We look forward to operating our business under this improved capital structure and are grateful for the support of all stakeholders throughout the process,” said Brian C. Strauss, president & CEO of the company. “Our new capital structure will better support our strong operating business and set the company up for long-term success.”

Associated Materials operates 11 manufacturing facilities in the U.S. and Canada which produce vinyl windows, vinyl siding and accessories, and metal building products. The company also operates 122 supply centers under the Alside and Gentek brands.