Arcosa, Inc. Announces Closing of $600 Million of 6.875% Senior Notes Due 2032
Arcosa, Inc. (NYSE: ACA) has successfully closed its previously announced private offering of $600 million aggregate principal amount of 6.875% senior notes due 2032. The company plans to use the net proceeds, along with expected borrowings under a Term Loan B Facility, to fund its acquisition of the construction materials business of Stavola Holding and its affiliated entities. Any remaining funds will be used to repay outstanding amounts under Arcosa's revolving credit facility.
The notes are senior unsecured obligations of Arcosa, guaranteed by its domestic subsidiaries that are guarantors under its senior credit facility. They were offered and sold only to qualified institutional buyers and certain non-U.S. persons, in compliance with Securities Act regulations. The notes are subject to a special mandatory redemption if the acquisition is not completed within the specified timeframe.
Arcosa, Inc. (NYSE: ACA) ha chiuso con successo la sua offerta privata annunciata in precedenza di $600 milioni di importo principale aggregato di note senior al 6,875% con scadenza nel 2032. L'azienda prevede di utilizzare i proventi netti, insieme ai prestiti attesi sotto un Term Loan B Facility, per finanziare l'acquisizione del business dei materiali da costruzione di Stavola Holding e delle sue entità affiliate. Eventuali fondi rimanenti saranno utilizzati per ripagare gli importi dovuti sotto la linea di credito revolving di Arcosa.
Le note sono obbligazioni senior non garantite di Arcosa, garantite dalle sue sussidiarie nazionali che sono garanti secondo la sua linea di credito senior. Sono state offerte e vendute solo a compratori istituzionali qualificati e a determinate persone non statunitensi, in conformità con le normative del Securities Act. Le note sono soggette a una particolare rimessione obbligatoria se l'acquisizione non viene completata entro il termine stabilito.
Arcosa, Inc. (NYSE: ACA) ha cerrado con éxito su oferta privada previamente anunciada de $600 millones de monto principal agregado de notas senior al 6.875% con vencimiento en 2032. La empresa planea utilizar los ingresos netos, junto con los préstamos esperados bajo una instalación de Préstamo a Plazo B, para financiar la adquisición del negocio de materiales de construcción de Stavola Holding y sus entidades afiliadas. Los fondos restantes se utilizarán para pagar los montos pendientes bajo la línea de crédito revolvente de Arcosa.
Las notas son obligaciones senior no garantizadas de Arcosa, garantizadas por sus subsidiarias nacionales que son garantes bajo su instalación de crédito senior. Fueron ofrecidas y vendidas solo a compradores institucionales calificados y a ciertas personas no estadounidenses, cumpliendo con las regulaciones de la Ley de Valores. Las notas están sujetas a un reembolso obligatorio especial si la adquisición no se completa dentro del plazo especificado.
Arcosa, Inc. (NYSE: ACA)는 2032년에 만료되는 6.875%의 선순위 채권 총 6억 달러에 대한 사전에 발표한 사모 발행을 성공적으로 마감했습니다. 회사는 순수익과 기한 대출 B 시설에서 예상되는 차입금을 사용하여 Stavola Holding과 그 계열사들의 건설 자재 사업을 인수할 계획입니다. 남은 자금은 Arcosa의 회전 신용 시설에서의 미지급 금액을 상환하는 데 사용될 것입니다.
이 채권은 Arcosa의 유동성 없는 선순위 의무이며, Arcosa의 선순위 신용 시설의 보증인인 국내 자회사에 의해 보장됩니다. 이 채권은 자격 있는 기관 투자자와 특정 비미국인에게만 제공되었으며, 증권법 규정에 준수합니다. 인수가 특정 기간 내에 완료되지 않을 경우 특별 강제 상환이 적용됩니다.
Arcosa, Inc. (NYSE: ACA) a clôturé avec succès son offre privée annoncée précédemment de 600 millions de dollars de montant principal agrégé de billets senior à 6,875% arrivant à échéance en 2032. L'entreprise prévoit d'utiliser les produits nets, ainsi que les emprunts attendus dans le cadre d'une facilité de prêt à terme B, pour financer l'acquisition de l'activité de matériaux de construction de Stavola Holding et de ses entités affiliées. Les fonds restants seront utilisés pour rembourser les montants dus dans le cadre de la facilité de crédit renouvelable d'Arcosa.
Les billets sont des obligations senior non garanties d'Arcosa, garanties par ses filiales nationales qui sont des garants dans le cadre de sa facilité de crédit senior. Ils ont été offerts et vendus uniquement à des investisseurs institutionnels qualifiés et à certaines personnes non américaines, conformément aux règlements de la Loi sur les valeurs mobilières. Les billets sont soumis à un remboursement obligatoire spécial si l'acquisition n'est pas finalisée dans les délais impartis.
Arcosa, Inc. (NYSE: ACA) hat erfolgreich ihr zuvor angekündigtes privates Angebot von
Die Notizen sind ungesicherte vorrangige Verbindlichkeiten von Arcosa, die von ihren inländischen Tochterunternehmen garantiert werden, die Sicherheiten unter ihrer vorrangigen Kreditfazilität leisten. Sie wurden nur an qualifizierte institutionelle Anleger und bestimmte nicht-US-Personen angeboten und verkauft, in Übereinstimmung mit den Vorschriften des Securities Act. Die Notizen unterliegen einer besonderen verpflichtenden Rückzahlung, wenn die Übernahme nicht innerhalb des festgelegten Zeitrahmens abgeschlossen wird.
- Successfully closed $600 million senior notes offering
- Proceeds to fund strategic acquisition in construction materials business
- Additional funds to repay revolving credit facility
- Increased debt burden with 6.875% interest rate
- Special mandatory redemption clause if acquisition fails
- Notes not registered under Securities Act, limiting potential investors
Insights
Arcosa's successful closing of a
The private offering structure of these senior notes under Rule 144A and Regulation S exemptions is a common approach for expedited capital raising. It allows Arcosa to avoid the time-consuming SEC registration process while still accessing institutional investors. The inclusion of subsidiary guarantees strengthens the notes' credit profile. The special mandatory redemption provision is a important safeguard for investors, ensuring funds are returned if the acquisition doesn't materialize. However, the lack of registration means liquidity for these notes in the secondary market. Investors should be aware that these unregistered securities are subject to resale restrictions. From a legal standpoint, this offering appears well-structured to balance the company's need for quick capital with investor protections, though it does limit the potential investor base.
Arcosa's move to acquire Stavola's construction materials business reflects a broader trend of consolidation in the infrastructure sector. With potential increased infrastructure spending on the horizon, this acquisition could position Arcosa favorably. The
Arcosa intends to use the net proceeds from the offering, together with expected borrowings under the previously announced Term Loan B Facility due 2031, to fund its previously announced acquisition of the construction materials business of Stavola Holding Corporation and its affiliated entities (the “Transaction”) and to use any remaining net proceeds to repay amounts outstanding under Arcosa’s revolving credit facility.
The Notes are senior unsecured obligations of Arcosa and are guaranteed on a senior unsecured basis by each of Arcosa’s domestic subsidiaries that is a guarantor under its senior credit facility. Additionally, the Notes are subject to a special mandatory redemption if the Transaction is not consummated on or before the timeframe set forth in the indenture governing the Notes.
The Notes and the related guarantees were offered and sold only to persons reasonably believed to be “qualified institutional buyers” in reliance on Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and outside
About Arcosa
Arcosa, Inc., headquartered in
Cautionary Statements About Forward-Looking Information
Some statements in this release, which are not historical facts, are “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements about Arcosa’s estimates, expectations, beliefs, intentions or strategies for the future. Arcosa uses the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “intends,” “forecasts,” “may,” “will,” “should,” “guidance,” “outlook,” “strategy,” “plans,” “goal” and similar expressions to identify these forward-looking statements. Forward-looking statements speak only as of the date of this release, and Arcosa expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statement contained herein, except as required by federal securities laws. Forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could cause actual results to differ materially from historical experience or present expectations, including but not limited to, the intended use of offering proceeds, the contingencies related to the special mandatory redemption, the failure to successfully complete and integrate acquisitions, including the Transaction, or divest any business, or failure to achieve the expected benefits of acquisitions or divestitures; market conditions and customer demand for Arcosa’s business products and services; the cyclical nature of, and seasonal or weather impact on, the industries in which Arcosa competes; competition and other competitive factors; governmental and regulatory factors; changing technologies; availability of growth opportunities; market recovery; ability to improve margins; the impact of inflation and costs of materials; assumptions regarding achievements of the expected benefits from the Inflation Reduction Act; the delivery or satisfaction of any backlog or firm orders; the impact of pandemics on Arcosa’s business; and Arcosa’s ability to execute its long-term strategy, and such forward-looking statements are not guarantees of future performance. For further discussion of such risks and uncertainties, see “Risk Factors” and the “Forward-Looking Statements” section of “Management's Discussion and Analysis of Financial Condition and Results of Operations” in Arcosa's Form 10-K for the year ended December 31, 2023 and as may be revised and updated by Arcosa's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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MEDIA CONTACT: media@arcosa.com
INVESTOR CONTACTS
Erin Drabek
Director of Investor Relations
T 972.942.6500
InvestorResources@arcosa.com
David Gold
ADVISIRY Partners
T 212.661.2220
David.Gold@advisiry.com
Source: Arcosa, Inc.
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