Alside Parent, AMI, Bolsters Financial Position
authors QR staff | August 5, 2020
CUYAHOGA FALLS, Ohio—Associated Materials, Inc. (AMI), one of the home improvement industry’s top manufacturers and distributors announced it had bolstered its financial position through a series of recapitalization transactions to de-lever its balance sheet and enhance its liquidity position.
AMI, a $1.3 billion company, is home to the Alside, Gentek, Revere, Alpine Windows, Preservation, and UltraGuard brands with reach into most parts of the North American building products market, producing windows, siding, gutters, and vinyl fencing and railing, among other products. In addition, the company is a major player among TOP 500 remodeling firms, sometimes private labeling products for top players.
Under the transactions, announced Aug. 3, holders of over 99 percent of the company’s $675 million 9 percent senior secured notes due 2024 will fully convert those holdings into substantially all of the common equity securities. The company’s convertible preferred equity will also be cancelled in exchange for a portion of the new common equity of the company, which also issued $250 million of new debt, the proceeds of which primarily will be used to provide liquidity on its balance sheet, a company statement said.
The transactions are expected to substantially reduce AMI’s net leverage to 2.1 times its earnings before interest, taxes, amortization and depreciation (EBITDA) and expand the its total liquidity in excess of $200 million.
The recapitalization agreement and related transactions are expected to close before the end of August 2020. QR