Universal Forest Products successfully issues long-term debt, announces new acquisition agreement

Dec 18, 2012. /Lesprom Network/. Universal Forest Products, Inc. has successfully negotiated loan agreements with Prudential Investment Management, Inc. totaling $75 million, which will be used to refinance $40 million of existing notes and for expansionary capital, including the acquisition of Custom Caseworks, Inc., as the company said in the press release received by Lesprom Network. “These are exciting times for the companies of Universal. With these successful transactions, we’ve added yet another thriving company to our business portfolio, and we’re armed with the capital necessary to continue to grow our company and our opportunity,” said CEO Matthew J. Missad. The notes negotiated with Prudential include unsecured ten-year Series A Senior Notes at 3.89% interest totaling $35 million, and unsecured 12-year Series B Senior Notes at 3.98% interest totaling $40 million. Proceeds from the issuance of the notes will be used by the Company to refinance its existing Series 2002-A Senior Notes totaling $40 million, which carried a 6.16% interest rate, and for general corporate purposes. The notes allow the Company to, among other things, pay down its revolving credit line used for the November 2012 purchase of Washington-based Nepa Pallet and Container Co., and provide capital for the pending purchase of Custom Caseworks, Inc., which is expected to close no later than December 31, 2012. “Our CFO Mike Cole and our finance team did a great job putting this credit facility together,” Missad said. “Thanks to their efforts we have locked in long-term debt at very favorable rates.” Founded in 1994 and located in Sauk Rapids, Minn., Custom Caseworks is a manufacturer of point-of-purchase and commercial store fixtures, commercial casework and office furniture, laminated and painted wood panels, and OEM-manufactured and private label products. The addition of Custom Caseworks furthers Universal’s strategic objective to expand into new, value-added product lines for the industrial market, and adds capabilities to Universal’s offerings. “We are excited to have the opportunity to add Custom Caseworks to the Universal family of companies,” Missad said. “John Lindholm (Custom Caseworks President and CEO) has grown an impressive company and team, and we’re honored to bring them into the Universal fold and to work together to create new opportunities and achieve great success based on our synergies.” Universal Forest Products, Inc. is a holding company that provides capital, management and administrative resources to subsidiaries that design, manufacture and market wood and wood-alternative products for DIY/retail home centers and other retailers, structural lumber products for the manufactured housing industry, engineered wood components for residential and commercial construction, specialty wood packaging and components for various industries, and forming products for concrete construction.