AZZ Inc. Announces Successful Completion of Term Loan B Repricing in Leverage-Neutral Transaction
AZZ Inc. (NYSE: AZZ), North America's leading provider of hot-dip galvanizing and coil coating solutions, has successfully repriced its $890 million Term Loan B. The repricing reduced the interest rate margin by 75 basis points to SOFR + 250 basis points, with no changes to leverage, covenants, or the May 13, 2029 maturity date. This leverage-neutral transaction is expected to result in annual interest savings of approximately $7 million.
Since the Term Loan B's issuance in May 2022, AZZ has reduced the interest rate margin by a total of 185 basis points. The company's strong business performance and cash flow generation have enabled it to take a disciplined approach to reducing debt, strengthening its balance sheet, and improving its leverage profile following the acquisition of Precoat Metals in May 2022.
AZZ Inc. (NYSE: AZZ), il principale fornitore nordamericano di soluzioni di zincatura a caldo e rivestimento a bobina, ha recentemente ri-priced il suo prestito a termine B da $890 milioni. Questa operazione ha ridotto il margine del tasso d'interesse di 75 punti base a SOFR + 250 punti base, senza modifiche a leve, clausole o data di scadenza del 13 maggio 2029. Questa transazione, neutrale rispetto alla leva, dovrebbe generare risparmi annuali sugli interessi di circa $7 milioni.
Da quando è stato emesso il prestito a termine B nel maggio 2022, AZZ ha ridotto il margine del tasso d'interesse di un totale di 185 punti base. L'ottima performance aziendale e la generazione di flussi di cassa hanno permesso all'azienda di adottare un approccio disciplinato per ridurre il debito, rafforzare il bilancio e migliorare il profilo di leva dopo l'acquisizione di Precoat Metals nel maggio 2022.
AZZ Inc. (NYSE: AZZ), el principal proveedor de soluciones de galvanización por inmersión en caliente y recubrimiento en bobinas de América del Norte, ha reestructurado con éxito su préstamo a plazo B de $890 millones. Esta reestructuración ha reducido el margen de la tasa de interés en 75 puntos básicos, a SOFR + 250 puntos básicos, sin cambios en el apalancamiento, convenios o la fecha de vencimiento del 13 de mayo de 2029. Se espera que esta transacción neutral en cuanto a apalancamiento resulte en ahorros anuales en intereses de aproximadamente $7 millones.
Desde la emisión del préstamo a plazo B en mayo de 2022, AZZ ha reducido el margen de la tasa de interés en un total de 185 puntos básicos. El sólido desempeño comercial y la generación de flujo de caja de la compañía le han permitido adoptar un enfoque disciplinado para reducir la deuda, fortalecer su balance y mejorar su perfil de apalancamiento tras la adquisición de Precoat Metals en mayo de 2022.
AZZ Inc. (NYSE: AZZ), 북미의 선도적인 горяч아연도금 및 코일 코팅 솔루션 제공업체가 8억 9천만 달러 규모의 B기한 대출의 금리를 성공적으로 재조정했습니다. 금리 마진은 75bp가 줄어들어 SOFR + 250bp로 책정되었으며, 레버리지나 계약 조건, 2029년 5월 13일 만기일에 대한 변경은 없습니다. 이번 레버리지 중립 거래로 인해 연간 약 700만 달러의 이자 절감 효과가 예상됩니다.
B기한 대출이 2022년 5월 발행된 이후, AZZ는 총 185bp의 금리 마진을 줄였습니다. 회사의 강력한 비즈니스 성과와 현금 흐름 창출 능력 덕분에 부채 감소, 재무제표 강화 및 레버리지 프로필 개선에 대한 규범적인 접근 방식을 채택할 수 있었습니다. 이는 2022년 5월 Precoat Metals 인수 이후의 일입니다.
AZZ Inc. (NYSE: AZZ), le principal fournisseur nord-américain de solutions de galvanisation à chaud et de revêtement en bobine, a réussi à restructurer son prêt à terme B de 890 millions de dollars. Cette restructuration a réduit la marge d'intérêt de 75 points de base à SOFR + 250 points de base, sans changement dans l'effet de levier, les engagements ou la date d'échéance du 13 mai 2029. Cette transaction neutre en matière de levier devrait entraîner des économies d'intérêt annuelles d'environ 7 millions de dollars.
Depuis l'émission du prêt à terme B en mai 2022, AZZ a réduit la marge d'intérêt d'un total de 185 points de base. La solide performance commerciale de l'entreprise et la génération de flux de trésorerie ont permis à l'entreprise d'adopter une approche disciplinée pour réduire la dette, renforcer son bilan et améliorer son profil d'endettement suite à l'acquisition de Precoat Metals en mai 2022.
AZZ Inc. (NYSE: AZZ), der führende Anbieter von Feuerverzinkungs- und Coil-Beschichtungslösungen in Nordamerika, hat erfolgreich seinen 890 Millionen Dollar großen Term Loan B umstrukturiert. Die Neubewertung reduzierte die Zinsmargen um 75 Basispunkte auf SOFR + 250 Basispunkte, ohne Veränderungen an der Verschuldung, den Verträgen oder dem Fälligkeitsdatum am 13. Mai 2029. Diese leistungsverhältnismäßig neutrale Transaktion soll jährliche Zinsersparnisse von rund 7 Millionen Dollar bringen.
Seit der Emission des Term Loan B im Mai 2022 hat AZZ die Zinsmarge um insgesamt 185 Basispunkte gesenkt. Die starke Unternehmensleistung und die Generierung von Cashflow haben es dem Unternehmen ermöglicht, einen disziplinierten Ansatz zur Schuldentilgung, Stärkung der Bilanz und Verbesserung des Verschuldungsprofils nach der Übernahme von Precoat Metals im Mai 2022 zu verfolgen.
- Successful repricing of $890 million Term Loan B
- 75 basis points reduction in interest rate margin
- Expected annual interest savings of $7 million
- Total interest rate margin reduction of 185 basis points since May 2022
- Strong business performance and cash flow generation
- Disciplined approach to debt reduction and balance sheet improvement
- None.
Insights
This repricing of AZZ's Term Loan B is a significant financial move that demonstrates the company's improving credit profile and market confidence. The 75 basis point reduction in the interest rate margin to SOFR + 250 basis points is substantial, potentially leading to
The cumulative 185 basis point reduction since May 2022 reflects AZZ's strengthening financial position post-acquisition of Precoat Metals. The company's ability to generate strong cash flows and reduce debt showcases effective financial management. This move enhances AZZ's financial flexibility, potentially freeing up capital for strategic initiatives or shareholder returns.
For investors, this development signals improved profitability prospects and a more robust balance sheet, which could positively impact the company's valuation and stock performance in the medium to long term.
Jason
About AZZ Inc.
AZZ Inc. is the leading independent provider of hot-dip galvanizing and coil coating solutions to a broad range of end-markets. Collectively, our business segments provide sustainable, unmatched metal coating solutions that enhance the longevity and appearance of buildings, products and infrastructure that are essential to everyday life.
Safe Harbor Statement
Certain statements herein about our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of The Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as "may," "could," "should," "expects," "plans," "will," "might," "would," "projects," "currently," "intends," "outlook," "forecasts," "targets," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology. Such forward-looking statements are based on currently available competitive, financial, and economic data and management's views and assumptions regarding future events. Such forward-looking statements are inherently uncertain, and investors must recognize that actual results may differ from those expressed or implied in the forward-looking statements. Forward-looking statements speak only as of the date they are made and are subject to risks that could cause them to differ materially from actual results. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties including, but not limited to, changes in customer demand for our manufactured solutions, including demand by the construction markets, the industrial markets, and the metal coatings markets. We could also experience additional increases in labor costs, components and raw materials including zinc and natural gas, which are used in our hot-dip galvanizing process; supply-chain vendor delays; customer requested delays of our manufactured solutions; delays in additional acquisition opportunities; an increase in our debt leverage and/or interest rates on our debt, of which a significant portion is tied to variable interest rates; availability of experienced management and employees to implement AZZ's growth strategy; a downturn in market conditions in any industry relating to the manufactured solutions that we provide; economic volatility, including a prolonged economic downturn or macroeconomic conditions such as inflation or changes in the political stability in
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
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SOURCE AZZ, Inc.
FAQ
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