Arcosa, Inc. Announces Proposed Offering of $600 Million of Senior Notes
Arcosa, Inc. (NYSE: ACA) has announced plans to offer $600 million in senior notes due 2032, subject to market conditions. The proceeds, along with expected borrowings from a Term Loan B Facility, will fund the $1.2 billion acquisition of Stavola Holding 's construction materials business. Any remaining funds will be used to repay Arcosa's revolving credit facility.
The notes will be senior unsecured obligations, initially guaranteed by Arcosa's domestic subsidiaries that are guarantors under its senior credit facility. The offering is to qualified institutional buyers and non-U.S. persons, complying with Rule 144A and Regulation S of the Securities Act. The notes are subject to a special mandatory redemption if the acquisition is not completed within the specified timeframe.
Arcosa, Inc. (NYSE: ACA) ha annunciato piani per offrire 600 milioni di dollari in obbligazioni senior con scadenza nel 2032, soggette alle condizioni di mercato. I proventi, insieme ai prestiti previsti da un'impostazione di prestito a termine B, finanzieranno l'
Le obbligazioni saranno obbligazioni senior non garantite, inizialmente garantite dalle filiali nazionali di Arcosa che sono garanti ai sensi della sua linea di credito senior. L'offerta è rivolta a investitori istituzionali qualificati e a persone non statunitensi, in conformità con la Regola 144A e il Regolamento S della Securities Act. Le obbligazioni sono soggette a un rimborso obbligatorio speciale se l'acquisizione non viene completata entro il termine specificato.
Arcosa, Inc. (NYSE: ACA) ha anunciado planes para ofrecer 600 millones de dólares en notas senior con vencimiento en 2032, sujeto a las condiciones del mercado. Los ingresos, junto con los préstamos esperados de una instalación de Préstamo a Plazo B, financiarán la adquisición de 1.2 mil millones de dólares del negocio de materiales de construcción de Stavola Holding. Cualquier fondo restante se utilizará para pagar la línea de crédito revolvente de Arcosa.
Las notas serán obligaciones senior no garantizadas, inicialmente garantizadas por las subsidiarias nacionales de Arcosa que son garantes de su línea de crédito senior. La oferta se dirige a compradores institucionales calificados y a personas no estadounidenses, cumpliendo con la Regla 144A y el Reglamento S 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 2032년 만기 6억 달러의 선순위 채권을 시장 상황에 따라 제공할 계획을 발표했습니다. 수익금은 예정된 단기 대출의 차입과 함께 12억 달러 규모의 Stavola Holding 건축 자재 사업의 인수에 사용될 것입니다. 남은 자금은 Arcosa의 환금 대출 기금을 상환하는 데 사용될 것입니다.
이 채권은 선순위 무담보 채무가 되며, Arcosa의 국내 자회사가 초기 보증인이 됩니다. 이 제안은 자격 있는 기관 투자자와 비미국인에게 제공되며, 유가증권법의 144A 조항 및 S 규정을 따릅니다. 인수 거래가 지정된 기간 내에 완료되지 않을 경우 특별 의무 상환이 적용됩니다.
Arcosa, Inc. (NYSE: ACA) a annoncé des plans pour offrir 600 millions de dollars en obligations senior arrivant à échéance en 2032, sous réserve des conditions du marché. Les produits, ainsi que les emprunts prévus d'un Prêt à Terme B, financeront l'acquisition de 1,2 milliard de dollars de l'activité matériaux de construction de Stavola Holding. Les fonds restants seront utilisés pour rembourser la ligne de crédit revolving d'Arcosa.
Les obligations seront des obligations senior non garanties, initialement garanties par les filiales nationales d'Arcosa qui sont garantes dans le cadre de son crédit senior. L'offre est destinée aux acheteurs institutionnels qualifiés et aux personnes non américaines, conformément à la Règle 144A et au Règlement S de la Loi sur les valeurs mobilières. Les obligations sont soumises à un rachat obligatoire spécial si l'acquisition n'est pas finalisée dans le laps de temps spécifié.
Arcosa, Inc. (NYSE: ACA) hat Pläne angekündigt, 600 Millionen US-Dollar in nachrangige Schuldverschreibungen mit Fälligkeit im Jahr 2032 anzubieten, vorbehaltlich der Marktbedingungen. Die Erlöse sowie die erwarteten Darlehen aus einem Term Loan B Facility sollen die 1,2 Milliarden US-Dollar Übernahme des Baustellenmaterialsgeschäfts von Stavola Holding finanzieren. Übrige Mittel werden verwendet, um Arcosas revolvierende Kreditlinie zurückzuzahlen.
Die Anleihen werden unbesicherte nachrangige Verbindlichkeiten sein, die zunächst von Arcosas nationalen Tochtergesellschaften garantiert werden, die Garanten im Rahmen ihrer senioren Kreditfazilität sind. Das Angebot richtet sich an qualifizierte institutionelle Käufer und Nicht-US-Personen und erfüllt die Anforderungen der Regel 144A sowie der Vorschrift S des Wertpapiergesetzes. Die Anleihen unterliegen einer besonderen obligatorischen Rückzahlung, wenn die Übernahme nicht innerhalb des festgelegten Zeitrahmens abgeschlossen ist.
- Arcosa is raising $600 million through senior notes offering
- The company is funding a significant $1.2 billion acquisition in the construction materials sector
- The acquisition could potentially expand Arcosa's market presence and revenue streams
- Increased debt load of $600 million from the senior notes offering
- Additional debt from the Term Loan B Facility to fund the acquisition
- Risk of special mandatory redemption if the acquisition is not completed on time
Insights
Arcosa's proposed
The special mandatory redemption clause provides a safety net for investors if the acquisition falls through, mitigating some risk. The private placement to qualified institutional buyers suggests a targeted approach to raising capital, potentially offering more favorable terms than a public offering. This move could enhance Arcosa's market position in construction materials, potentially driving long-term revenue growth and shareholder value.
The offering's structure as a private placement under Rule 144A and Regulation S exempts Arcosa from SEC registration requirements, streamlining the process but limiting the investor pool. This approach often allows for quicker execution and reduced disclosure obligations compared to public offerings.
The senior unsecured nature of the notes, coupled with subsidiary guarantees, provides a balanced risk profile for investors. However, the lack of registration means reduced liquidity for noteholders. The special mandatory redemption clause acts as a protective mechanism for investors, ensuring capital return if the acquisition fails to materialize within the specified timeframe. This structure demonstrates a thoughtful approach to balancing company flexibility with investor protection.
Arcosa's move to acquire Stavola's construction materials business for
The timing aligns with potential increases in government infrastructure projects, which could drive demand for construction materials. However, investors should consider the cyclical nature of the construction industry and potential economic headwinds. The successful integration of Stavola's business will be important for realizing synergies and justifying the acquisition cost. This move could significantly enhance Arcosa's market share and competitive position in the construction materials segment, potentially leading to improved long-term financial performance.
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 the
The Notes will be senior unsecured obligations of Arcosa and will initially be guaranteed on a senior unsecured basis by each of Arcosa’s domestic subsidiaries that is a guarantor under its senior credit facility.
The Notes will be 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 are being 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
This press release shall not constitute an offer to sell, or a solicitation of an offer to buy, the Notes or any other securities, and shall not constitute an offer to sell, solicitation of an offer to buy, or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the Notes will be made only by means of a private offering memorandum.
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, statements regarding the anticipated consummation of the offering, the intended use of offering proceeds, the anticipated terms of the securities described herein, other aspects of the offering, 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
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.
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