Louisiana-Pacific Faces Rising Interest Rate Risk From Variable-Rate Amended Credit Facility

Louisiana-Pacific Corp (LPX) has disclosed a new risk, in the Debt & Financing category.

Louisiana-Pacific Corp is exposed to interest rate volatility because its Amended Credit Facility borrowings are priced on variable benchmarks, including a base rate and Adjusted Term SOFR, each plus a floating margin. As market rates or credit spreads rise, its interest expense could increase materially, pressuring cash flows, profitability, and covenant headroom.

The average LPX stock price target is $105.80, implying 19.06% upside potential.

To learn more about Louisiana-Pacific Corp’s risk factors, click here.