DMC Global closes $300M senior secured credit facility

DMC Global closed a $300 million, five-year senior secured credit facility consisting of a $200 million revolving credit facility, a $50 million term loan and a $50 million delayed draw term loan. The facility replaces DMC’s prior $200 million credit facility. In December 2021, DMC acquired a 60% controlling interest in Arcadia Products LLC, a leading provider of architectural building products to the commercial and ultra-high-end residential construction industries. A put/call option on the remaining 40% stake in Arcadia becomes exercisable on December 23, 2024. The current estimated value of the put/call option, net of a tax bridge loan, is approximately $163 million. The $50 million term loan and approximately $70 million of the $200 million revolving credit facility will be used to refinance DMC’s existing bank debt. The $50 million delayed draw term loan and unused capacity on the revolving credit facility will be available to support the purchase of the remaining 40% of Arcadia.