Installed Building Products, an installer of insulation and complementary building products, closed its previously announced new seven-year, $500 million term loan. RBC Capital Markets, BofA Securities, Goldman Sachs Bank USA, Jefferies Finance and The Benchmark Company acted as joint lead arrangers and bookrunning managers for the new term loan.

The new term loan matures on March 28, 2031, has no financial maintenance covenants and is rated BB+ by S&P Global Ratings and Ba1 by Moody’s Investors Service. The pricing of the new term loan bears interest at the adjusted term secured overnight financing rate plus 2% per annum, or an alternative base rate plus 1%. The company used net proceeds of the new term loan to refinance its prior $490 million term loan b facility and pay fees.

“Our ability to successfully refinance the new term loan on more favorable financial terms to our previous term loan while extending the expiration date by more than two years is the result of IBP’s continued strong operating and financial performance, conservative capital structure and current market conditions. The new term loan’s expiration date has further staggered the repayment timing of our long-term debt,” Michael Miller, CFO of Installed Building Products, said.