MasterBrand closes $700 million senior notes offering and $750 million revolver
MasterBrand completed a $700.0 million private offering of 7.00% senior notes due 2032 and entered into a new $750.0 million revolving credit facility on June 27, 2024. The company said it will use the proceeds, along with revolver borrowings and cash on hand, to fund its previously announced acquisition of Supreme Cabinetry Brands, repay its existing term loan, and pay related fees. The new debt and secured credit terms add to the company's borrowing obligations, which shareholders should weigh against the pending acquisition.
- Senior notes: $700.0 million principal, 7.00% interest, maturing July 15, 2032; net proceeds about $689.5 million
- Revolving credit facility: 5-year, $750.0 million, with JPMorgan Chase Bank, N.A. as administrative agent
- Proceeds to fund the Supreme Cabinetry Brands acquisition and refinance the existing credit agreement dated November 19, 2022
- Credit agreement requires a net leverage ratio no higher than 3.50:1.00 through December 31, 2024, and 3.25:1.00 thereafter, subject to an acquisition step-up to 3.75:1.00