Installed Building Products, Inc. 8-K

What Happened

• Installed Building Products, Inc. announced on Jan 21, 2026 that it completed a private offering of $500.0 million aggregate principal of 5.625% senior unsecured notes due Feb 1, 2034 (the "2034 Notes"). Net proceeds were about $490 million. About $308.2 million of proceeds were used to conditionally redeem in full the company’s outstanding 5.75% senior notes due 2028, which were fully redeemed on Jan 22, 2026.
• The company also entered Amendment No. 4 to its asset-based lending (ABL) credit agreement on Jan 21, 2026, increasing the ABL revolver commitment to $375.0 million and extending its maturity to Jan 21, 2031.

Key Details

• 2034 Notes: $500.0M principal; 5.625% interest; maturity Feb 1, 2034; interest paid semiannually starting Aug 1, 2026. Offered privately under Rule 144A/Reg S (unregistered).
• Use of proceeds: ~ $308.2M to redeem 2028 Notes; remaining proceeds for redemption fees/expenses and general corporate purposes. 2028 Indenture (2019 Indenture) was satisfied and discharged upon redemption.
• ABL Revolver terms: commitment increased to $375M; maturity Jan 21, 2031 (includes a springing maturity tied to other material indebtedness); incremental revolver capacity up to $105M; letter of credit capacity $100M; swingline capacity $50M. Interest: Term SOFR or base rate + margin (1.00–1.25% for SOFR; 0–0.25% for base rate, depending on availability).
• Security & covenants: ABL obligations guaranteed by existing/future restricted subsidiaries and secured by substantially all assets (subject to exceptions). The 2034 Notes are senior unsecured and will be guaranteed by certain domestic subsidiaries. The 2026 Indenture includes customary restrictive covenants (limits on dividends/share repurchases, certain asset sales, affiliate transactions, mergers, etc.) and change-of-control repurchase protections.

Why It Matters

• Liquidity and maturity profile: The transaction refinances near-term 2028 debt with a longer-dated issue (2034), extending debt maturities and reducing near-term refinancing risk. The larger ABL revolver increases the company’s available borrowing capacity and short-term liquidity flexibility.
• Cash use and balance sheet impact: Majority of net proceeds were used to retire the 2028 notes, leaving the company with a long-term fixed-rate obligation and a refreshed secured credit facility. Investors should note the new interest cost (5.625% coupon on the 2034 Notes) and the security/covenant package tied to the ABL facility.
• Form and sale: The 2034 Notes were sold in a private placement to institutional and non‑U.S. investors (Rule 144A and Regulation S), so they are unregistered securities with transfer restrictions.