Installed Building Products, Inc. (NYSE: IBP), a leading installer of insulation and complementary building products, has announced the successful repricing of its $500 million Term Loan B facility. Additionally, the company repurchased 250,000 shares of its common stock in November for approximately $52 million, including commissions. This brings the year-to-date share repurchases in 2024 to 565,000 shares at a total cost of $118 million. As of now, IBP has $182 million remaining under its current share repurchase authorization, which is set to expire on March 1, 2025.
Term Loan Repricing Benefits
The repriced Term Loan retains its maturity date of March 28, 2031 and now bears an interest rate of adjusted term SOFR (Secured Overnight Financing Rate) plus 1.75% per annum, reduced from the previous 2.00%, or an alternative base rate plus 0.75%. This repricing is expected to save the company over $1 million annually in cash interest expenses.
IBP’s Chief Financial Officer, Michael Miller, expressed optimism about the repricing and its financial benefits, stating:
“The Term Loan repricing will provide IBP with over $1 million in estimated cash interest expense savings annually. IBP’s continued strong operating and financial performance, coupled with favorable market conditions, enabled us to lower our borrowing costs and return capital to shareholders through share buybacks.”
The Term Loan has received ratings of BB+ from S&P Global Ratings and Ba1 from Moody’s Investors Service, reflecting its solid financial standing.
Share Repurchase Program
In November alone, IBP repurchased 250,000 shares at an approximate cost of $52 million, marking a continued commitment to returning value to shareholders. Year-to-date in 2024, the company has repurchased 565,000 shares for $118 million, further underscoring its robust financial health and focus on shareholder returns.
Financial Advisors
RBC Capital Markets acted as the lead left arranger and bookrunner for the Term Loan repricing. Other joint lead arrangers and bookrunning managers included BofA Securities, KeyBanc Capital Markets, US Bancorp, and PNC Capital Markets LLC.
Details regarding the amended credit facility will be included in the company’s forthcoming Form 8-K filing.
About Installed Building Products
Installed Building Products, Inc. is one of the nation’s largest new residential insulation installers and is a diversified installer of complementary building products, including waterproofing, fire-stopping, fireproofing, garage doors, rain gutters, window blinds, shower doors, closet shelving and mirrors and other products for residential and commercial builders located in the continental United States. The Company manages all aspects of the installation process for its customers, from direct purchase and receipt of materials from national manufacturers to its timely supply of materials to job sites and quality installation. The Company offers its portfolio of services for new and existing single-family and multi-family residential and commercial building projects in all 48 continental states and the District of Columbia from its national network of over 250 branch locations.
