LP amends US$100M credit agreement, naming Bank of America as administrative agent and extending maturity to Oct. 14, 2016 from Sept. 10, 2012
October 17, 2011
– Louisiana-Pacific Corporation (LP) (NYSE:LPX - News) announced today it has executed a fourth amendment (the “Fourth Amendment”), dated October 14, 2011, to its loan and security agreement (the “Revolving Credit Agreement”), dated March 10, 2009, with the lenders party thereto and Bank of America, N.A., as administrative agent.
Among other changes, the Fourth Amendment: (1) extends the maturity of the revolving loan facility evidenced by the Revolving Loan Agreement from September 10, 2012 to October 14, 2016, (2) decreases the interest rate payable for certain types of loans, (3) permits LP to include in its borrowing base certain vendor managed inventory that was previously excluded, (4) increases LP’s flexibility to incur and prepay certain debt and (5) provides that the Revolving Lenders’ second priority liens on certain assets of LP and its subsidiaries that secure certain indebtedness of LP and its subsidiaries to other parties on a first priority basis will be automatically released in connection with the repayment of such other indebtedness.
“We are very pleased with this amendment and the strong support LP has received from our banks,” Treasurer Mark Tobin said. “This facility, as amended, provides LP with greater flexibility over a longer term and at attractive pricing. As we continue to navigate through a very difficult housing market, it is important to have the certainty that stable, long-term liquidity lines provide. We believe this to be crucial to our operations and investors as we move forward.”
Louisiana-Pacific Corporation is a leading manufacturer of quality engineered wood building materials including OSB, structural framing products, and exterior siding for use in residential, industrial and light commercial construction. From manufacturing facilities in the U.S., Canada, Chile and Brazil, LP products are sold to builders and homeowners through building materials distributors and dealers and retail home centers. Founded in 1973, LP is headquartered in Nashville, Tennessee and traded on the New York Stock Exchange under LPX. For more information, visit www.lpcorp.com.
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