Graybar, a Clayton-based, employee-owned company that often gets ranked in many “Top Workplaces” lists nationwide, managed to secure a massive $750 million financing deal last year. According to the electrical product’s distributor, the impressive amount will be used to fund its expansion plans as well as subsidize its general working capital needs.
When Graybar first announced the closing of the multi-million financing deal back in August 2018, the company revealed that it was made possible by making amendments and extensions to its five-year unsecured revolving credit facility. The revised loan agreement matures in August 2023.
In addition, Graybar also updated all uncommitted $100 million private placement shelf agreements to coincide with the changes in the amended credit agreement, as well as lengthen the issuance period under one shelf agreements from September 2019 to August 2021.
“This financing agreement gives Graybar additional flexibility to invest in innovation and accelerate our growth,” Randy Harwood, Graybar’s Senior Vice President and CFO, said during the deal’s announcement.
Immediately following the closure of the deal, Graybar reported a 10 percent increase in its third-quarter sales compared to the same period in 2017, netting a sales record of $1.9 billion. Net income was also up 82 percent from the same period last year, at $54 million.
For the first three quarters of 2018, Graybar posted an 8 percent growth in year-on-year sales, scoring a net sales total of $5.3 billion. Net income for the same period also increased by 48.1 percent to $119.1 million.
Graybar attributed the increase in net income to the lower corporate income tax rate set by the Tax Cuts and Jobs Act (TCJA), as well as currently implemented tax planning strategies.
“I am very pleased with our results through three quarters,” Kathleen M. Mazzarella, chairman, president, and chief executive officer of Graybar, said about the growth. “We continue to see positive results as we remain focused on delivering an exceptional customer experience and transforming the supply chain for the future.”
In October 2018, The Oregonian named Graybar to its Top Workplaces list, an anonymous survey based exclusively on employee feedback and that takes into account several aspects of workplace culture.
Further, Graybar also made several organizational changes that took effect at the beginning of this year, namely:
Naming Andrew E. Ciccone as Vice President. Andy has been with Graybar for 26 years and served as District Vice President in the company’s Tampa district before assuming his new post.
Naming David L. Schwichtenberg as District Vice President in Tampa to replace Andy. David has 44 years with Graybar. He was District Vice President in Graybar’s Richmond district before this latest promotion.
Naming Brian P. Delaney as District Vice President in Richmond to replace David. Brian is the former Director, Electrical and Industrial Sales in the company’s New York district, a position he held since 2014.
Truly, Graybar is a dynamic and successful company that continues to grow in the best ways possible. For those looking to move to St. Louis and grow their careers in this fast-evolving company, talk to us at Cardinal Realty Group about finding a place to live.