AZZ Inc. Successfully Repositions Term Loan B in Leverage-Neutral Deal
AZZ Inc., a prominent provider of hot-dip galvanizing and coil coating solutions in North America, has announced the successful repricing of its existing $890 million Term Loan B, set to mature on May 13, 2029. The company has managed to reduce the interest rate margin on the Term Loan B by an additional 75 basis points to SOFR + 250 basis points, with no changes to leverage, covenants, or maturity date. This repricing is expected to result in annual interest savings of approximately $7 million per year, assuming the same level of indebtedness.
Jason Crawford, the Chief Financial Officer of AZZ Inc., expressed satisfaction with the strong market demand for the Term Loan B. Since its issuance in May 2022, the company has successfully reduced the interest rate margin by a total of 185 basis points. Following the acquisition of Precoat Metals in May 2022, AZZ Inc. has demonstrated robust business performance and strong cash flow generation, enabling the company to strategically reduce debt, strengthen its balance sheet, and improve its leverage profile.
About AZZ Inc.
AZZ Inc. is a leading independent provider of hot-dip galvanizing and coil coating solutions serving a wide range of end-markets. The company’s business segments offer sustainable and unmatched metal coating solutions that enhance the longevity and appearance of buildings, products, and infrastructure essential to everyday life.
Safe Harbor Statement
Certain statements made by AZZ Inc. regarding expectations of future events or results constitute forward-looking statements under the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on currently available competitive, financial, and economic data, as well as management’s views and assumptions regarding future events. While these statements are inherently uncertain, investors should be aware that actual results may differ from those expressed or implied in the forward-looking statements.
The company cautions that certain factors could affect the outcome of the matters described in the press release. These factors include changes in customer demand, labor costs, raw materials, supply-chain vendor delays, customer requested delays, acquisition opportunities, debt leverage, interest rates, availability of experienced management, market conditions, economic volatility, and other economic and financial conditions. AZZ Inc. has provided additional information on risks associated with its business in its filings with the SEC.
Investor Relations and Company Contact:
David Nark, Senior Vice President of Marketing, Communications, and Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
In conclusion, AZZ Inc.’s successful repricing of its Term Loan B reflects the company’s commitment to managing its debt and strengthening its financial position. The strategic move to reduce interest rates while maintaining leverage neutrality demonstrates AZZ Inc.’s proactive approach to financial management in a dynamic market environment.
