Beacon to draw from credit facility
Beacon announced today that it elected to draw down approximately $725 million from its revolving credit facility.
This is a proactive measure to increase the company's cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the COVID-19 pandemic. The funds will supplement the company's cash position. After the draw, Beacon will maintain approximately $185 million of additional capacity on its revolver.
“The health and safety of our employees, customers and communities remains our foremost priority during this most unusual period,” said Julian Francis, Beacon’s president and chief executive officer. “It is also our obligation to be good stewards of the company’s financial assets. Our outstanding credit facility provides Beacon considerable financial flexibility to manage our balance sheet, and our draw on our ABL revolver exemplifies this. Even though our business has been deemed essential everywhere we operate and we remain open to serve our customers in all 50 states and Canada, we thought it prudent to have additional cash on hand in the event that we experience a material downturn in overall business operations as a result of the COVID-19 pandemic. The ABL draw that we are announcing today is just one of the many levers available to Beacon to help us ensure that we will be able to meet our long-term goals for our employees, customers and shareholders.”
INDUSTRIAL SUPPLY MAGAZINE
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