Patrick Industries Entered Into A Credit Agreement With Wells Fargo (PATK, WFC)

Patrick Industries PATK announced today that it has entered into a credit agreement with Wells Fargo Capital Finance as the lender and agent, establishing a four-year $50.0 million revolving secured senior credit facility. Additional subordinated debt financing of $5.0 million was provided by Tontine Capital Overseas Master Fund II, a significant shareholder of Patrick, and Northcreek Mezzanine Fund I, L.P. in the form of secured senior subordinated notes. As part of the consideration for the notes, the Company issued warrants to purchase 125,000 shares of common stock to each of Tontine and Northcreek at an exercise price of $0.01 per share. The warrants are immediately exercisable and expire on March 31, 2016. Patrick used the proceeds of these financings to repay in full its existing senior credit facility at par. In addition, the Company terminated and paid off its existing interest rate swap agreements. The swaps had a total fair value in the amount of $1.1 million on the termination date. "We are excited to have entered into this new credit agreement which, based on our projections, provides the availability for Patrick to finance its ongoing working capital needs and general corporate purposes for the next four years. We are also very appreciative of the support that JPMorgan Chase and our other senior lenders have provided throughout the process of not only weathering the severe economic downturn, but in allowing us the time and opportunity to put a competitive facility in place to meet both our short-term and long-term needs. In addition, we look forward to our new partnership with Wells Fargo and Northcreek, as well as continuing our ongoing strong relationship with Tontine," stated Todd Cleveland, President and CEO.