ELKHART,
Ind., Oct. 24, 2024 /PRNewswire/ -- Patrick
Industries, Inc. (NASDAQ: PATK) ("Patrick" or the "Company") today
announced the closing of its previously announced private offering
of $500 million aggregate principal
amount of 6.375% Senior Notes due 2032 (the "Notes"), at an issue
price of 100% of the principal amount of the Notes, in a private
placement exempt from registration under the Securities Act of 1933
(the "Securities Act") on October 22,
2024. Net proceeds from the offering, together with borrowings
under the 2024 Credit Facility (as defined below), will be used to
redeem all $300 million aggregate
principal amount of the Company's 7.500% Senior Notes due 2027,
repay a portion of the Company's borrowings under its existing
senior secured credit facility and pay fees and expenses in
connection with the foregoing.
On October 24, 2024, the Company
amended and restated its credit agreement to establish a new
$1.0 billion senior secured credit
facility consisting of an $875
million revolving credit facility (the "2024 Revolver"), a
$125 million term loan (the "2024
Term Loan" and, together with the 2024 Revolver, the "2024 Credit
Facility") and a maturity date ending in October 2029. The 2024 Credit Facility replaces
the Company's existing credit facility that was due to mature in
August 2027.
About Patrick Industries, Inc.
Patrick (NASDAQ: PATK) is a leading component solutions provider
serving the RV, Marine, Powersports and Housing markets. Since
1959, Patrick has empowered manufacturers and outdoor enthusiasts
to achieve next-level recreation experiences. Our customer-focused
approach brings together design, manufacturing, distribution, and
transportation in a full solutions model that defines us as a
trusted partner. Patrick is home to more than 85 leading brands,
all united by a commitment to quality, customer service, and
innovation. Headquartered in Elkhart,
IN, Patrick employs approximately 10,000 skilled team
members throughout the United
States. For more information on Patrick, our brands, and
products, please visit www.patrickind.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains certain statements within the
meaning of Private Securities Litigation Reform Act of 1995
that are forward-looking in nature, including, without limitation,
the use of proceeds of the Notes offering and the new senior
secured credit facility. The forward-looking statements are based
on current expectations and our actual results may differ
materially from those projected in any forward-looking statement.
There can be no assurance that any forward-looking statement will
be realized or that actual results will not be significantly
different from that set forth in such forward-looking statement.
Factors that could cause actual results to differ materially from
those in forward-looking statements included in this press release
include, without limitation: adverse economic and business
conditions, including cyclicality and seasonality in the industries
we sell our products; the financial condition of our customers or
suppliers; the loss of a significant customer; changes in consumer
preferences; declines in the level of unit shipments or reduction
in growth in the markets we serve; the availability of retail and
wholesale financing for RVs, watercraft and powersports products,
and residential and manufactured homes; pricing pressures due to
competition; costs and availability of raw materials, commodities
and energy and transportation; supply chain issues, including
financial problems of manufacturers or suppliers and shortages of
adequate materials or manufacturing capacity; the challenges and
risks associated with doing business internationally; challenges
and risks associated with importing products, such as the
imposition of duties, tariffs or trade restrictions; the ability to
manage our working capital, including inventory and inventory
obsolescence; the availability and costs of labor and production
facilities and the impact of labor shortages; fuel shortages or
high prices for fuel; any interruptions or disruptions in
production at one of our key facilities; challenges with
integrating acquired businesses; the impact of the consolidation
and/or closure of all or part of a manufacturing or distribution
facility; an impairment of assets, including goodwill and other
long-lived assets; an inability to attract and retain qualified
executive officers and key personnel; the effects of union
organizing activities; the impact of governmental and environmental
regulations, and our inability to comply with them; changes to
federal, state, local or certain international tax regulations;
unusual or significant litigation, governmental investigations, or
adverse publicity arising out of alleged defects in
products, services, perceived environmental impacts, or otherwise;
public health emergencies or pandemics, such as the COVID-19
pandemic; our level of indebtedness; our inability to comply with
the covenants contained in the existing senior secured credit
facility or the new senior secured credit facility; an inability to
access capital when needed; the settlement or conversion of our
notes; fluctuations in the market price for our common stock; an
inability of our information technology systems to perform
adequately; any disruptions in our business due to an IT failure, a
cyber-incident or a data breach; any adverse results from our
evaluation of our internal controls over financial reporting under
Section 404 of the Sarbanes-Oxley Act of 2002; certain provisions
in our Articles of Incorporation and Amended and Restated By-laws
that may delay, defer or prevent a change in control; adverse
conditions in the insurance markets; and the impact on our business
resulting from wars and military conflicts, such as war in
Ukraine and evolving conflict in
the Middle East.
The Company does not undertake to publicly update or revise any
forward-looking statements. Information about certain risks that
could affect our business and cause actual results to differ from
those express or implied in the forward-looking statements are
contained in the section entitled "Risk Factors" in the Company's
Annual Report on Form 10-K for the year ended December 31, 2023, and in the Company's Forms
10-Q for subsequent quarterly periods, which are filed with the
Securities and Exchange Commission ("SEC") and are available on the
SEC's website at www.sec.gov. Each forward-looking statement speaks
only as of the date of this press release, and we undertake no
obligation to update any forward-looking statement to reflect
events or circumstances occurring after the date on which it is
made. Prospective purchasers are cautioned not to place undue
reliance on these forward-looking statements.
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SOURCE Patrick Industries, Inc.
