Tecnoglass Amends Credit Facility, Increasing Capacity to $500 Million USD

Tecnoglass Inc. (NYSE: TGLS), a manufacturer of architectural glass and aluminum and vinyl windows, has amended its senior secured revolving credit facility, expanding its borrowing capacity from $150 million USD to $500 million USD. The company also reduced its borrowing costs and extended the initial maturity date of the facility by five years, to the end of 2030.

Under the amended terms, interest on borrowings will be the Secured Overnight Financing Rate (SOFR) with no floor, plus a spread of 1.25%. This represents a reduction from the prior spread of 1.50%, based on the company’s net leverage ratio.

Santiago Giraldo, Tecnoglass’s chief financial officer, commented on the change, stating, “The overwhelming support from our blue-chip banking syndicate, achieving almost twice as much in commitments versus the proposed facility amount, combined with the exceptional pricing we achieved, demonstrates the confidence in our strategic direction and operational excellence.” Giraldo added, “The expansion of our committed facility by over three times to $500 million, coupled with the five-year maturity extension to 2030, provides us with strong financial flexibility to capitalize on robust growth opportunities, particularly with our US expansion efforts, while maintaining our disciplined approach to achieving above-industry returns on invested capital. With our strong record of cash generation and this enhanced facility, we maintain one of the strongest balance sheets in our industry.”

Tecnoglass Inc. (NYSE: TGLS) produces aluminum and vinyl windows and architectural glass for the multifamily, single-family, and commercial end markets. Operating from a vertically integrated manufacturing complex in Barranquilla, Colombia, the company serves customers in North, Central, and South America, with the United States accounting for 95% of its total revenues. Tecnoglass products have been used in properties such as One Thousand Museum in Miami, Salesforce Tower in San Francisco, and Hub50House in Boston.

The credit facility was arranged by Wells Fargo Bank N.A. as administrative agent. The joint lead arrangers included BMO Bank N.A., Citibank N.A., Citizens Bank N.A., First Citizens Bank & Trust Company, and J.P. Morgan Chase Bank N.A.

Wynn, Miami. Photo credit: Tecnoglass.