January 31, 2017

Builders FirstSource Reprices and Extends Senior Secured Term Loan Facility due 2024 at LIBOR +3%, a 0.75% reduction

DALLAS, Jan. 31, 2017 (GLOBE NEWSWIRE) -- Builders FirstSource, Inc. (Nasdaq:BLDR) (the "Company"), a leading supplier and manufacturer of structural and related building products for residential new construction and home repair and remodeling in the United States, today announced that it has secured commitments for the reprice of its previous $468 million senior secured term loan facility due 2022 (the "Previous Term Loan Facility") through an amendment and extension to its term loan credit agreement providing for a $468 million senior secured term loan facility due 2024 (the "New Term Loan Facility") and an interest reduction of 0.75%.  The transaction closing is expected on February 23, 2017.

Term loans under the $468 million New Term Loan Facility bear interest based on either the eurodollar rate or base rate (a rate equal to the highest of an agreed benchmark rate commercially available, the federal funds effective rate plus 0.50% and the eurodollar rate plus 1.0%) plus, in each case, an applicable margin, at the Company's option. The applicable margin in respect of the loans under the New Term Loan Facility will be (x) 3% in the case of Eurodollar rate loans and (y) 2% in the case of base rate loans. This represents a 0.75% reduction from the Previous Term Loan Facility.  Deutsche Bank AG New York Branch continues to serve as administrative agent and collateral agent under the New Term Loan Facility. 

The repricing enables the company to reduce the interest rate on its Term Loan by 0.75% as well as extend the maturity to 2024.  This transaction should reduce go forward interest by approximately $3 million annually.

Floyd Sherman, the Company's Chief Executive Officer, commented, "We are always actively evaluating opportunistic transactions to lower our interest expense, strengthen our capital position,  and improve our cash flow yield for our shareholders. The New Term Loan Facility will lower our go forward annual cash interest expense by approximately $3 million, as well as extend the maturity of our debt."

Peter Jackson, the Company's Chief Financial Officer, added, "Our weighted average debt maturity on our term loans and bonds is over 7 years, with the closest maturity in August of 2023. Our debt structure continues to provide the company the flexibility for debt repayment, and the terms of our debt allow the company to repay our most expensive debt first, which will result in stronger free cash flow and higher debt repayment."

Cautionary Notice

Statements in this news release that are not purely historical facts or that necessarily depend upon future events, including statements about anticipations, beliefs, expectations, hopes, intentions or strategies for the future, may be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act. Readers are cautioned not to place undue reliance on forward-looking statements. All forward-looking statements are based upon information available to Builders FirstSource, Inc. on the date this release was submitted. Builders FirstSource, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements. Further information regarding factors that could affect our financial and other results can be found in the risk factors section of Builders FirstSource, Inc.'s most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein.

Investor Relations



Jennifer Pasquino

SVP Investor Relations

Builders FirstSource, Inc.

(303) 262-8571

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