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SEC Filings

10-Q
FORTERRA, INC. filed this Form 10-Q on 11/09/2017
Entire Document
 
FORTERRA, INC.
Notes to Unaudited Condensed Consolidated Financial Statements



10.    Accrued liabilities

Accrued liabilities consist of the following (in thousands):

 
September 30,
 
December 31,
 
2017
 
2016
Accrued payroll and employee benefits
$
26,305

 
$
29,945

Accrued taxes
13,197

 
32,746

Accrued rebates
10,275

 
7,509

Short-term derivative liability
7,028

 

Warranty
4,117

 
3,509

Tax receivable agreement liability, current portion
4,000

 
4,000

Environmental obligation
685

 
775

Other miscellaneous accrued liabilities
13,713

 
3,681

Total accrued liabilities
$
79,320

 
$
82,165



11. Debt and deferred financing costs

The Company’s debt consisted of the following (in thousands):

 
September 30,
 
December 31,
 
2017
 
2016
2016 Senior Term Loan, net of debt issuance costs and original issuance discount of $43,440 and $46,392, respectively
$
1,195,055

 
$
1,000,983

2016 Revolver, net of debt issuance costs of $3,936

 
95,064

Total debt
$
1,195,055

 
$
1,096,047

  Less: current portion debt
(12,510
)
 
(10,500
)
Total long-term debt
$
1,182,545

 
$
1,085,547



Concurrent with the completion of the IPO, in the Refinancing the Company entered into the 2016 Revolver for working capital and general corporate purposes and the 2016 Senior Term Loan, the proceeds of which, together with the proceeds from the IPO, were used to repay in full the Junior Term Loan of $260.0 million, the 2015 Senior Term Loan of $1.04 billion, and the existing balance under the 2015 Revolver, in addition to related expenses associated with the IPO and Refinancing. Immediately subsequent to the completion of the IPO, Forterra had $125.0 million outstanding on its 2016 Revolver and $1.05 billion on its 2016 Senior Term Loan. The $260.0 million repayment toward the Junior Term Loan represented a full repayment of the outstanding principal on that loan, resulting in a related write-off of issue discounts and capitalized issuance costs of approximately $22.4 million. The repayment also triggered a prepayment penalty of approximately $7.8 million.

The 2016 Senior Term Loan provides for a $1.05 billion senior secured term loan that was made available to a newly formed direct subsidiary of Forterra. Subject to the conditions set forth in the term loan agreement, the 2016 Senior Term Loan may be increased by (i) up to the greater of $285.0 million and 1.0x consolidated EBITDA (defined below) of Forterra and its restricted subsidiaries for the four quarters most recently ended prior to such incurrence plus (ii) the aggregate amount of any voluntary prepayments, plus (iii) an additional amount, provided certain financial tests are met.


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