Burnham Holdings, the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers and related HVAC products and accessories (including advanced control systems, furnaces, and radiators) for residential, commercial, and industrial applications, announced changes in its funding structure today, including a new revolving credit facility. Total parent and subsidiaries' current outstanding debt did not increase as a result of these changes, which provide greater flexibility to support business operations.

The new 5-year revolving facility (revolver) replaces the previous 5-year revolving credit facility which was set to mature on January 31, 2025.  The new revolver is financed through Fulton Bank and PNC Bank, and includes total borrowing capacity of up to $92.0 million to support working capital needs.  The revolver matures on October 16, 2028 with no scheduled principal payments prior to maturity.  Interest on the revolver is due monthly and interest rates are set at a predefined margin rate plus one-month term Secured Overnight Financing Rate (SOFR).

Additionally, to free capacity on the revolver, a $3.7 million term note was entered into and collateralized by certain real property.  The term note accrues interest at a fixed rate; principal and interest payments are due quarterly beginning December 2023.  The term note matures on October 16, 2033.

The Companies are subject to certain financial covenants related to the collective financing arrangements noted above, however, there are now two covenants versus three covenants previously.