Barranquilla, Colombia–(Business Wire)– Tecnoglass, Inc. (NASDAQ:TGLS BVC:TGLSC), the Barranquilla, Colombia based manufacturer of architectural glass, windows, and associated aluminum products for the global residential and commercial construction industries, today announced that it entered into a new $109.5 million, seven-year senior secured credit facility on January 7, 2016.
Proceeds from the new facility were used to refinance $83.5 million of existing debt, with the remaining $26.0 million available to the company for capital expenditures and working capital needs. As of January 7, 2016, the company had approximately $115.8 million of debt outstanding, including $83.5 million of borrowings on the new facility.
The proceeds are used primarily to refinance $83.5 million USD of existing debt, with remaining proceeds of $26 million available for capital expenses and working capital.
The new facility features two tranches, including one tranche denominated in US Dollars (USD) representing 71% of the facility and another tranche denominated in Colombian Pesos (COP) representing the remaining 29%. Borrowings under the facility will bear interest at a weighted-average interest rate of approximately 7.00% for the first year, and thereafter at a rate of LIBOR plus 5.25% and DTF (Colombian index) plus 5.00% for the respective USD and COP denominated tranches.
José M. Daes, Chief Executive Officer of Tecnoglass, commented, “We are thrilled to enter into this new facility which improves our cost of capital and strengthens our balance sheet position. The refinancing was completed on attractive terms to us and extends the maturity on a significant portion of our debt. With the additional capital resources available to us, we believe we are now even better situated to continue expanding our US presence and introducing new products to capture additional market share. We appreciate the continued support from our bank partners and their increasing confidence in our strong growth trajectory in 2016 and beyond.”
Tecnoglass is one of the largestarchitectural glass companies in Latin America, manufacturing windows and aluminum products for the residential and commercial construction industries. Tecnoglass operates out of a 2.3 million square foot vertically-integrated, manufacturing complex, and sells to roughly 800 customers in North, Central and South America, with the United States accounting for approximately 51% of Company revenues in 2014.
Photo credit: http://imgur.com/user/josemanueldaes