Arcosa, Inc. Announces Launch of $700 Million Term Loan B
Arcosa, Inc. (NYSE: ACA) has announced the launch of a proposed $700 million senior secured Term Loan B Facility due 2031. The company plans to use the proceeds from this Term Loan, along with available cash and other unsecured debt, to fund its previously announced $1.2 billion acquisition of the construction materials business of Stavola Holding and its affiliated entities.
The closing of the Term Loan is expected to occur in the fourth quarter of 2024, subject to market conditions, negotiation and execution of definitive documents, and the satisfaction of customary closing conditions, including the concurrent closing of the acquisition. Arcosa cautions that there are no guarantees of success in its marketing efforts or ability to obtain the Term Loan.
Arcosa, Inc. (NYSE: ACA) ha annunciato il lancio di un prestito senior garantito Term Loan B proposto da 700 milioni di dollari, con scadenza nel 2031. L'azienda prevede di utilizzare i proventi di questo prestito insieme a liquidità disponibile e ad altre obbligazioni non garantite, per finanziare la sua già annunciata acquisizione di 1,2 miliardi di dollari dell’attività di materiali da costruzione di Stavola Holding e delle sue entità affiliate.
La chiusura del prestito è prevista per il quarto trimestre del 2024, soggetta alle condizioni di mercato, alla negoziazione e all'esecuzione dei documenti definitivi, e al soddisfacimento delle condizioni di chiusura consuete, inclusa la chiusura contemporanea dell'acquisizione. Arcosa avverte che non ci sono garanzie di successo nei suoi sforzi di marketing o nella sua capacità di ottenere il prestito.
Arcosa, Inc. (NYSE: ACA) ha anunciado el lanzamiento de una propuesta de un préstamo senior garantizado Term Loan B de 700 millones de dólares con vencimiento en 2031. La compañía planea utilizar los ingresos de este préstamo, junto con efectivo disponible y otra deuda no garantizada, para financiar su adquisición de 1.2 mil millones de dólares del negocio de materiales de construcción de Stavola Holding y sus entidades afiliadas.
Se espera que el cierre del préstamo ocurra en el cuarto trimestre de 2024, sujeto a las condiciones del mercado, negociación y ejecución de documentos definitivos, y al cumplimiento de las condiciones de cierre habituales, incluida la clausura concurrente de la adquisición. Arcosa advierte que no hay garantías de éxito en sus esfuerzos de marketing o en su capacidad para obtener el préstamo.
Arcosa, Inc. (NYSE: ACA)는 2031년 만기 예정인 7억 달러 규모의 제안된 선순위 담보 Term Loan B 시설의 출범을 발표했습니다. 이 회사는 이 대출금으로 더욱 불어나는 현금 및 다른 무담보 채무와 함께 이미 발표한 12억 달러 규모의 인수를 위해 사용할 계획입니다. 이는 Stavola Holding의 건축 자재 사업 및 그 소속 법인들입니다.
Term Loan의 마감은 2024년 4분기에 이루어질 것으로 예상되며, 이는 시장 조건과 최종 문서의 협상 및 실행, 그리고 인수의 동시 마감 등 관습적인 마감 조건의 충족을 전제로 합니다. Arcosa는 마케팅 노력의 성공이나 Term Loan을 획득할 수 있는 능력에 대해 보장할 수 없음을 경고합니다.
Arcosa, Inc. (NYSE: ACA) a annoncé le lancement d'un prêt senior garanti Term Loan B proposé de 700 millions de dollars, dû en 2031. La société prévoit d'utiliser les produits de ce prêt, ainsi que de la trésorerie disponible et d'autres dettes non garanties, pour financer son acquisition de 1,2 milliard de dollars de l'activité des matériaux de construction de Stavola Holding et de ses entités affiliées.
La clôture du prêt est prévue pour le quatrième trimestre de 2024, sous réserve des conditions du marché, de la négociation et de l'exécution des documents définitifs, ainsi que de la satisfaction des conditions de clôture habituelles, y compris la clôture concomitante de l'acquisition. Arcosa met en garde qu'il n'y a aucune garantie de succès dans ses efforts de marketing ni dans sa capacité à obtenir le prêt.
Arcosa, Inc. (NYSE: ACA) hat die Einführung eines vorgeschlagenen 700 Millionen Dollar schweren Senior Secured Term Loan B-Fazilität mit Fälligkeit im Jahr 2031 angekündigt. Das Unternehmen beabsichtigt, die Erlöse aus diesem Darlehen sowie verfügbare Barmittel und andere ungesicherte Schulden zu verwenden, um die bereits angekündigte 1,2 Milliarden Dollar Übernahme des Bau-materialien Geschäfts von Stavola Holding und dessen verbundenen Unternehmen zu finanzieren.
Der Abschluss des Term Loans wird im vierten Quartal 2024 erwartet, vorbehaltlich der Marktbedingungen, der Verhandlung und Ausführung der endgültigen Dokumente sowie der Erfüllung üblicher Abschlussbedingungen, einschließlich des gleichzeitigen Abschlusses der Übernahme. Arcosa warnt darauf hin, dass es keine Garantie für den Erfolg seiner Marketingmaßnahmen oder die Fähigkeit zur Beschaffung des Term Loans gibt.
- Launching a $700 million Term Loan B Facility to fund a major acquisition
- Planned acquisition of Stavola Holding 's construction materials business for $1.2 billion
- Potential expansion in the construction materials sector
- Significant increase in debt load with the $700 million Term Loan
- Uncertainty surrounding the successful obtainment of the Term Loan
- Potential risks associated with a large-scale acquisition
Insights
Arcosa's move to secure a
- Aggressive growth strategy: Arcosa is leveraging debt to expand its market presence substantially.
- Confidence in future cash flows: The company believes it can service this large debt, suggesting strong projected revenues from the acquisition.
- Potential risk: The increased leverage could strain the balance sheet if the acquisition doesn't meet performance expectations.
Investors should closely monitor the terms of the loan and Arcosa's post-acquisition performance to assess the long-term impact on the company's financial health.
Arcosa's
- Market consolidation: This move could trigger further M&A activity in the sector as competitors respond.
- Vertical integration: Arcosa is likely aiming to control more of its supply chain, potentially leading to cost synergies and improved margins.
- Economic indicator: Such a large investment in construction materials suggests Arcosa anticipates robust infrastructure spending, possibly tied to government initiatives.
Investors should watch for changes in Arcosa's market share and profitability post-acquisition, as well as broader industry reactions to this significant move.
Arcosa intends to use the proceeds from the Term Loan, together with available cash and other unsecured debt the Company intends to obtain, to fund the previously announced acquisition of the construction materials business of Stavola Holding Corporation and its affiliated entities for
There can be no assurances that the Company will be successful in its marketing efforts or that it will be able to obtain the Term Loan. Closing of the Term Loan, which is anticipated to occur in the fourth quarter of 2024, is subject to market conditions, as well as the negotiation and execution of definitive documents and the satisfaction of customary closing conditions, including the concurrent closing of the Transaction.
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 our present expectations, including but not limited to assumptions, risks and uncertainties regarding failure to successfully complete and integrate acquisitions, including Ameron and Stavola, or divest any business, including the steel components 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
Gail M. Peck
Chief Financial Officer
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.
FAQ
What is the purpose of Arcosa's $700 million Term Loan B Facility?
When is Arcosa (ACA) expected to close the Term Loan B Facility?
What is the total value of the acquisition Arcosa (ACA) is planning?
Are there any risks associated with Arcosa's (ACA) proposed Term Loan?
