Installed Building Products, Inc. (IBP) has issued $500 million of senior unsecured notes due 2034, selling the debt to qualified institutional buyers under a Rule 144A exemption and to certain non‑U.S. investors under Regulation S.
The proceeds will be used to redeem IBP’s outstanding 5.75% senior unsecured notes due 2028, pay related fees and expenses, and fund general corporate purposes, including future growth initiatives.
The offering expands IBP’s capital‑structure flexibility by extending the maturity profile of its debt and preserving liquidity for acquisitions and shareholder returns. As of the latest reporting, the company’s net debt is roughly 1.1–1.2 times EBITDA, a level that indicates prudent leverage and a strong interest‑coverage ratio of 12.6×.
IBP’s disciplined acquisition strategy targets $100 million in annual revenue additions. Recent deals in 2024 and 2025 added more than $100 million in revenue, demonstrating the company’s ability to deploy capital efficiently and supporting the stated M&A target.
The debt issuance also underpins future growth initiatives such as expanding geographic reach and diversifying product lines, aligning with IBP’s strategy to capture growth in both residential and commercial markets.
Management emphasized that the refinancing will improve cash flow and provide flexibility for strategic investments while maintaining a robust interest‑coverage ratio, thereby strengthening the company’s financial position.
The notes are subject to market conditions; completion of the offering is contingent on successful subscription.
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