Burnham Holdings Strengthens Capital Structure with New $130 Million Revolving Credit Facility

Rhea-AI Summary

Burnham Holdings (OTC-Pink: BURCA) has closed a new five-year syndicated revolving credit facility totaling $130 million, financed by Wells Fargo Bank and Fulton Bank. The facility replaces the company’s prior $92 million facility, which had been scheduled to mature on October 16, 2028.

The new structure consists of an $80 million revolver plus a $50 million accordion feature, maturing on August 4, 2031. According to Burnham Holdings, it offers more favorable covenants, increased liquidity, and flexibility to fund working capital, strategic investments, acquisitions, and other general corporate purposes, with interest based on a margin over one‑month term SOFR.

Positive

• Total borrowing capacity increased from $92 million to $130 million
• Facility maturity extended to August 4, 2031 from October 16, 2028
• New $80 million revolver plus $50 million accordion enhances liquidity options
• More favorable covenant structure increases financial flexibility while maintaining discipline

Negative

• None.

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Five-year facility increases liquidity, enhances financial flexibility and supports long-term growth initiatives

LANCASTER, Pa., August 6, 2026 /PRNewswire/ -- Burnham Holdings, Inc. (OTC-Pink: BURCA) ("BHI", the "Company", "we" or "our"), the parent company to leading domestic manufacturers of boilers and related HVAC products and accessories, today announced the successful closing of a new five-year revolving credit facility that strengthens the Company's capital structure, enhances financial flexibility and supports its growth strategy. The syndicated facility is financed through Wells Fargo Bank, N.A. and Fulton Bank, N.A.

The new five-year revolving credit facility replaces the Company's existing facility, which was scheduled to mature on October 16, 2028, and increases total borrowing capacity from $92 million to $130 million. Comprised of an $80 million revolving credit facility and a $50 million accordion feature, the facility provides greater liquidity and financial flexibility to support working capital needs, strategic investments, acquisition opportunities, and other general corporate purposes. It also includes a more favorable covenant structure that enhances financial flexibility while maintaining prudent financial discipline. The facility matures on August 4, 2031, and the Company can repay borrowings at any time prior to maturity. Interest is payable quarterly at a predefined margin plus one-month term Secured Overnight Financing Rate (SOFR).

"This new revolving credit facility significantly strengthens our financial position," said Nick Ribich, Vice President and Chief Financial Officer of Burnham Holdings. "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. We deeply appreciate Fulton's longstanding relationship with Burnham and are pleased to welcome Wells Fargo as a new banking partner. Their support reflects confidence in the strength of our business as we continue executing our strategy and creating value for our shareholders."

Wells Fargo and Fulton were selected following a competitive financing process managed by Ernst & Young Debt Capital Markets Group in coordination with BHI management. McNees Wallace and Nurick LLC served as legal counsel to the Company in connection with this transaction.

About Burnham Holdings, Inc.

Burnham Holdings, Inc. (BHI) is the parent company of multiple subsidiaries that are leading domestic manufacturers of boilers for residential applications. Additionally, through its various subsidiaries it serves the commercial/industrial boiler markets with a variety of boiler products, rental trailers, and boiler room services. BHI is focused on creating value through portfolio optimization, operational efficiency and an expanding suite of high-performance heating solutions. BHI is listed on the OTC Exchange under the ticker symbol "BURCA." For more information, please visit www.burnhamholdings.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions that are subject to risks and uncertainties, including the timing of closing conditions and macroeconomic realities. Actual results may differ materially from those expressed or implied in the forward-looking statements.

View original content:https://www.prnewswire.com/news-releases/burnham-holdings-strengthens-capital-structure-with-new-130-million-revolving-credit-facility-302845100.html

SOURCE Burnham Holdings, Inc.

FAQ

What is the size and structure of Burnham Holdings (BURCA) new credit facility announced on August 6, 2026?

Burnham Holdings’ new facility totals $130 million, combining an $80 million revolving credit line and a $50 million accordion feature. According to Burnham Holdings, this structure is designed to provide additional liquidity and flexibility for working capital, strategic investments, acquisitions, and general corporate purposes.

How does the new Burnham Holdings (BURCA) revolving credit facility compare to the prior one?

The new facility increases borrowing capacity to $130 million from $92 million and extends maturity to August 4, 2031. According to Burnham Holdings, it also introduces a more favorable covenant structure, enhancing financial flexibility while maintaining prudent financial discipline for the company.

When does Burnham Holdings (BURCA) new revolving credit facility mature and who are the lenders?

The new revolving credit facility matures on August 4, 2031 and is syndicated with Wells Fargo Bank and Fulton Bank. According to Burnham Holdings, Wells Fargo joins Fulton following a competitive financing process managed by Ernst & Young Debt Capital Markets Group with company management.

What will Burnham Holdings (BURCA) use its new $130 million credit facility for?

Burnham Holdings plans to use the facility to support working capital, strategic investments, acquisition opportunities, and general corporate purposes. According to Burnham Holdings, the increased capacity and accordion feature are intended to back its long-term growth strategy and investments across its boiler and HVAC businesses.

What are the interest terms and covenant features of Burnham Holdings (BURCA) new credit facility?

Interest on the new facility is payable quarterly at a predefined margin plus one-month term SOFR. According to Burnham Holdings, the agreement includes a more favorable covenant structure, which is intended to enhance financial flexibility while preserving prudent financial discipline and allowing optional prepayment before maturity.