Universal Forest Products Successfully Issues Long-Term Debt, Announces New Acquisition Deal
Universal Forest Products, Inc. (NASDAQ: UFPI) today announced that it has successfully negotiated loan agreements with Prudential Investment Management, Inc. totaling $75 million, which will be used to refinance $40 million of existing notes and for expansionary capital, including the acquisition of Custom Caseworks, Inc., a manufacturer of commercial casework, fixtures and related products.
The notes negotiated with Prudential include unsecured ten-year Series A Senior Notes at 3.89 percent interest totaling $35 million, and unsecured 12-year Series B Senior Notes at 3.98 percent interest totaling $40 million. Proceeds from the issuance of the notes will be used by the Company to refinance its existing Series 2002-A Senior Notes totaling $40 million, which carried a 6.16 percent interest rate, and for general corporate purposes.
The notes allow the Company to, among other things, pay down its revolving credit line used for the November 2012 purchase of Washington-based Nepa Pallet and Container Co., and provide capital for the pending purchase of Custom Caseworks, Inc., which is expected to close no later than December 31, 2012.
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