LANCASTER, PA — Burnham Holdings Inc. (OTC-Pink: BURCA) increased its borrowing capacity to $130 million under a new five-year revolving credit facility this month, giving the HVAC manufacturer additional liquidity for working capital, investments and potential acquisitions.
The syndicated facility, financed through Wells Fargo Bank, N.A. and Fulton Bank, N.A., replaces a $92 million facility that had been scheduled to mature Oct. 16, 2028. The new agreement runs through Aug. 4, 2031.
The financing consists of an $80 million revolving credit facility and a $50 million accordion feature, expanding Burnham’s potential borrowing capacity by $38 million, or about 41%, from the previous arrangement.
Burnham stated that the facility also provides a more favorable covenant structure. Borrowings may be repaid before maturity, while interest is payable quarterly at a predefined margin over the one-month term Secured Overnight Financing Rate, or SOFR.
The additional capacity gives Burnham greater flexibility to fund operations and pursue acquisitions or other strategic investments as the Lancaster-based parent company manages its portfolio of boiler, HVAC product and accessory manufacturers.
“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,” Chief Financial Officer Nick Ribich stated.
Wells Fargo and Fulton were selected through a competitive financing process managed by Ernst & Young Debt Capital Markets Group in coordination with Burnham management.
McNees Wallace and Nurick LLC served as Burnham’s legal counsel on the transaction.
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