Analysis of Debt
Total Debt (Carrying Amount)
Builders FirstSource Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
Total long-term debt carrying amounts exhibited significant volatility and a substantial overall increase between 2018 and 2022. After an initial contraction in 2019, the total debt obligation entered a period of aggressive expansion, specifically between 2020 and 2021, resulting in a final balance that is approximately 91% higher than the 2018 baseline.
- Overall Debt Trajectory
- Total long-term debt, including current maturities, decreased from 1,561,294 thousand US dollars in 2018 to 1,291,273 thousand US dollars in 2019. This was followed by a steady increase to 1,624,240 thousand US dollars in 2020. A substantial surge occurred in 2021, where debt levels jumped to 2,929,782 thousand US dollars, before stabilizing at 2,984,197 thousand US dollars by the end of 2022.
- Debt Composition and Structure
- The debt profile is heavily weighted toward long-term obligations. Long-term debt net of current maturities consistently represents the vast majority of the total carrying amount. In 2022, the net long-term debt of 2,977,842 thousand US dollars accounted for over 99% of the total debt obligation, indicating a capital structure reliant on long-term financing rather than short-term borrowing.
- Current Maturity Fluctuations
- Current maturities of long-term debt showed irregular patterns, peaking in 2020 at 27,335 thousand US dollars. A sharp reduction was observed in 2021, with current maturities falling to 3,660 thousand US dollars, the lowest level in the five-year period. This suggests significant refinancing activities or a shifting of maturity schedules during that fiscal year.
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Total Debt (Fair Value)
| Dec 31, 2022 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Revolving credit facility | 264,000) |
| 4.25% 2032 notes | 1,059,500) |
| 6.375% 2032 notes | 659,800) |
| 2030 notes | 489,500) |
| 2027 notes | —) |
| 2024 notes | —) |
| 2024 term loan | —) |
| Other finance obligations | 197,281) |
| Finance lease obligations | 4,105) |
| Total long-term debt, including current maturities (fair value) | 2,674,186) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 0.90 |
Based on: 10-K (reporting date: 2022-12-31).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on long-term debt: 4.87%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 3.70% | 264,000) | 9,768) | |
| 4.25% | 1,300,000) | 55,250) | |
| 6.38% | 700,000) | 44,625) | |
| 5.00% | 550,000) | 27,500) | |
| 5.70% | 4,105) | 234) | |
| Total | 2,818,105) | 137,377) | |
| 4.87% | |||
Based on: 10-K (reporting date: 2022-12-31).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 137,377 ÷ 2,818,105 = 4.87%