Burnham Holdings Enhances Financial Position with New $130 Million Credit Line

Burnham Holdings Strengthens Financial Structure

Burnham Holdings, Inc. (BHI), recognized as a prominent manufacturer in the boiler and HVAC sectors, has recently celebrated a significant milestone with the closing of a new five-year revolving credit facility valued at $130 million. This financial maneuver aims to not only bolster the company's capital structure but also provide enhanced financial flexibility to facilitate its long-term growth initiatives.

Better Financial Flexibility

This new credit facility, arranged by Wells Fargo Bank and Fulton Bank, replaces the previous facility that was set to mature on October 16, 2028. The increased borrowing capacity, soaring from $92 million to $130 million, will allow Burnham Holdings to harness greater liquidity. This will be instrumental in supporting their working capital needs and allowing for strategic investments, operational acquisitions, and general corporate purposes. Comprised of an $80 million revolving credit component and a $50 million accordion feature, this facility underscores the company’s commitment to maintaining a strong financial foundation.

The maturity of this facility is extended to August 4, 2031, and enables Burnham Holdings to repay borrowings prior to this date as they see fit. With quarterly interest payments calculated with a predefined margin plus the one-month term Secured Overnight Financing Rate (SOFR), the new terms represent an improved covenant structure that emphasizes financial prudence while affording room for strategic flexibility.

Leadership Insights

Nick Ribich, the Vice President and Chief Financial Officer at Burnham Holdings, expressed optimism about this new financial arrangement. “This new revolving credit facility significantly strengthens our financial position. With increased borrowing capacity, an improved covenant structure, and an extended maturity, we are well-positioned to invest across our businesses, pursue strategic growth opportunities, and execute on our long-term strategy,” Ribich stated. He also acknowledged the supportive partnership with Fulton Bank and welcomed Wells Fargo as a new banking ally, which reflects confidence in the company’s operational strength.

The financing process was meticulously managed by Ernst & Young's Debt Capital Markets Group, ensuring a competitive offer, ultimately leading to the selection of Wells Fargo and Fulton Bank as financial partners. Legal counsel for this transaction was provided by the firm McNees Wallace and Nurick LLC.

About Burnham Holdings

Burnham Holdings, Inc. is a parent company to a variety of subsidiaries, all of which are esteemed domestic manufacturers of boilers, particularly designed for residential markets. The company also has a stake in the commercial and industrial boiler sectors, providing a comprehensive array of boiler products, rental options, and complete boiler room services. Focusing on value creation through portfolio optimization and operational efficiency, Burnham Holdings continues to expand its portfolio of high-performance heating solutions.

The firm trades on the OTC Exchange under the ticker symbol