AZEK Company Debt Covenants Analysis – Americas Covenants

After completing its IPO in June 2020, the AZEK Company debt covenants and capital structure have become more complicated. The company’s gross profit increased 23.3% year over year at the end of Q2 2021 and during Q2, AZEK amended both its term loan and ABL facility to decrease pricing. Their springing financial covenants show that they must maintain a fixed charge coverage ratio of at least 1x, plus their debt and lien capacity shows that permissions from their term loans, ABL, and their unsecured debt are making an impact on the company’s leverage ratios. 

To read our Americas Covenants team’s full analysis on the AZEK Company debt covenants as well as our conclusions about the company’s restricted payments and investments, IPO proceeds and term loan prepayments as well as their pro rata sharing and lien subordination amendments click through here: https://reorg.com/new-coverage-issuer-covenant-card-the-azek-company/