– Increases the currently untapped committed facility from $ 50 million to $ 150 million and reduces interest from an aggregate rate of 3.25% to 1.90% at current rates –
– Reduces interest costs by approximately $ 3 million per year, representing cumulative annual interest savings of approximately $ 15 million from refinancing activities since 2020 –
– The outstanding debt remains unchanged; The net debt / adjusted EBITDA ratio remains at its lowest –
Barranquilla, Colombia, November 15, 2021 (GLOBE NEWSWIRE) – Tecnoglass, Inc. (NASDAQ: TGLS) (âTecnoglassâ or the âCompanyâ), a leading manufacturer of architectural glass, windows and aluminum products partners for the global residential and commercial construction industries, today announced that it has amended its senior secured revolving credit facility to (i) increase borrowing capacity under its committed line of credit of $ 50 million. dollars to $ 150 million, (ii) reduce its borrowing costs by approximately 130 basis points, and (iii) extend the original maturity date by one year until the end of 2026. Borrowing in under the credit facility will now bear interest at the no-floor LIBOR rate plus a spread of 1.75%, on a leverage ratio basis, compared to a previous LIBOR rate with a floor of 0.75% plus a spread of 2.50%. The company expects the changes to generate approximately $ 3 million in additional savings on interest charges on an annual basis for current outstanding borrowings.
Santiago Giraldo, CFO of Tecnoglass, said: âWe are extremely proud of our exceptional track record in financial performance and cash generation. Today’s announcement once again demonstrates to our customers, employees, partners and shareholders that our commercial momentum is very strong and that our growth investments are paying off. This largely oversubscribed transaction reduces our cost of capital while significantly improving our liquidity and financial flexibility. As a result of this refinancing, we now estimate total annual savings of approximately $ 15 million at current levels of outstanding borrowing, since the conclusion of our first syndicated American Bank facility in October 2020. This resized revolver positions us exceptionally well to fund future growth initiatives and to continue to capitalize on opportunities in the quarters and years to come. We are extremely encouraged by the overwhelming support received by the Union of American and European Banks who understood the positive winds in our business as well as our structural competitive advantages which allow us to overtake the industry and gain additional market share. The composition of the syndicate and the financial costs incurred in this transaction validate the success of our âUS centricâ corporate strategy.
The facility was managed by PNC Bank NA as administrative agent; with Citizens Bank NA, BBVA USA, CIT Bank and Wells Fargo Bank NA as joint lead managers.
Tecnoglass Inc. is a leading producer of architectural glass, windows and associated aluminum products serving the multi-family, single-family and commercial end markets. Tecnoglass is the second largest glass manufacturer in the United States and the leading architectural glass processing company in Latin America. Located in Barranquilla, Colombia, the state-of-the-art, vertically integrated, 2.7 million square foot manufacturing complex provides efficient access to more than 1,000 customers worldwide, with the United States representing more than 90% of income. Tecnoglass’ premium bespoke products can be found in some of the world’s most distinctive properties including One Thousand Museum (Miami), Paramount (Miami), Salesforce Tower (San Francisco), Via 57 West (NY), Hub50House ( Boston), Aeropuerto Internacional El Dorado (BogotÃ¡), One Plaza (MedellÃn), Pabellon de Cristal (Barranquilla). For more information, please visit www.tecnoglass.com or watch our corporate video on https://vimeo.com/134429998.
This press release includes certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding future financial performance, future growth and future acquisitions. These statements are based on Tecnoglass’ current expectations or beliefs and are subject to uncertainty and changing circumstances. Actual results may differ materially from those expressed or implied in these statements due to changes in economic, business, competitive and / or regulatory factors, and other risks and uncertainties affecting the operation of Tecnoglass’ business. These risks, uncertainties and contingencies are set out from time to time in documents filed by Tecnoglass with the Securities and Exchange Commission. The information contained in this document should be read in light of these risks. In addition, investors should be aware that the financial results of Tecnoglass in any given period may not be indicative of future results. Tecnoglass has no obligation and expressly disclaims any obligation to update or change its forward-looking statements, whether as a result of new information, future events and changes in assumptions or otherwise, unless the law l ‘required.
Santiago Giraldo Chief Financial Officer 305-503-9062 investor [email protected]
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