Hillman Successfully Reprices Senior Term Loan Lowering Interest Expense

CINCINNATI, March 26, 2024 (GLOBE NEWSWIRE) -- Hillman Solutions Corp. (Nasdaq: HLMN) (the “Company” or “Hillman”), a leading provider of hardware products and merchandising solutions, successfully repriced its existing $752 million Term Loan due July 14, 2028.

The repricing reduces Hillman’s interest rate margin by 25 basis points to SOFR + 250 basis point and successfully removes the Credit Spread Adjustment (“CSA”) of 11 basis points, based on current leverage and elections.

The expected annualized interest savings are approximately $2.6 million, before one-time fees of approximately $1.4 million.

Rocky Kraft, Hillman’s chief financial officer commented: "The improved interest rate spread is a result of Hillman’s execution and improved financial position. Since the second quarter of 2022, we have reduced our net inventories by $192 million and improved our gross debt position by $206 million. We expect to continue strengthening our balance sheet as we use our free cash flow to pay down debt throughout 2024.”

Should Hillman’s first lien leverage ratio, as defined by Hillman’s Term Loan Credit Agreement, drop below 3.0 times, the interest rate margin will be reduced by another 25 basis points, to 225 basis points.

Following the company’s Q4 2023 results issued on February 22, 2024, S&P upgraded Hillman’s issuer credit rating to 'BB' from 'BB-' and maintained its ‘Stable’ outlook; while Moody’s affirmed Hillman’s ‘B1’ Corporate Family Rating and upgraded its outlook to ‘Stable’ from ‘Negative.’ During September 2023, Fitch affirmed its Long-Term Issuer Default Rating of ‘BB-’ Hillman and its ‘Stable’ outlook.

During December 2023, Hillman entered into new swap agreements fixing $360 million of the term note at approximately 3.69 percent plus the interest rate spread. These new swaps go into effect when the existing swaps expire on July 31, 2024, and expire on January 31, 2027.

About Hillman Solutions Corp.
Celebrating its 60th anniversary during 2024, Hillman Solutions Corp. (“Hillman”) and its subsidiaries are leading North American providers of complete hardware solutions. Hillman, which was founded in 1964 and headquartered in Cincinnati, Ohio, delivers complete hardware solutions with outstanding customer service to over 46,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & industrial customers. Leveraging its leading distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency. For more information on Hillman, visit www.hillmangroup.com.