Concrete Pumping Holdings Announces Upsizing and Pricing of Its Senior Secured Second Lien Notes Offering
Concrete Pumping Holdings (Nasdaq: BBCP) announced that its subsidiary Brundage-Bone Concrete Pumping Holdings has successfully upsized and priced a private offering of $425.0 million senior secured second lien notes due 2032, representing a $25.0 million increase from the previously announced $400.0 million. The notes will carry a 7.500% annual interest rate.
The offering is expected to close on January 31, 2025. The company plans to use the proceeds to redeem all outstanding 6.000% senior secured second lien notes due 2026 and pay related fees. Additionally, the remaining proceeds, along with cash on hand, will fund a special one-time dividend of $1.00 per share (approximately $53 million total). Both the redemption and dividend payment are contingent on the offering's completion.
Concrete Pumping Holdings (Nasdaq: BBCP) ha annunciato che la sua controllata Brundage-Bone Concrete Pumping Holdings ha aumentato e fissato con successo un'offerta privata di 425,0 milioni di dollari di obbligazioni di secondo livello garantite senior, in scadenza nel 2032, rappresentando un aumento di 25,0 milioni di dollari rispetto ai 400,0 milioni di dollari precedentemente annunciati. Le obbligazioni avranno un tasso di interesse annuale del 7,500%.
L'offerta è prevista per chiudere il 31 gennaio 2025. L'azienda prevede di utilizzare i proventi per riscattare tutte le obbligazioni di secondo livello garantite senior al 6,000% in scadenza nel 2026 e pagare le relative spese. Inoltre, i proventi rimanenti, insieme ai fondi disponibili, finanzieranno un dividendo speciale una tantum di 1,00 dollaro per azione (circa 53 milioni di dollari in totale). Sia il riscatto che il pagamento del dividendo sono subordinati al completamento dell'offerta.
Concrete Pumping Holdings (Nasdaq: BBCP) anunció que su subsidiaria Brundage-Bone Concrete Pumping Holdings ha ampliado y fijado con éxito una oferta privada de 425.0 millones de dólares en notas garantizadas senior de segundo gravamen con vencimiento en 2032, lo que representa un aumento de 25.0 millones de dólares respecto a los 400.0 millones de dólares previamente anunciados. Las notas tendrán una tasa de interés anual del 7.500%.
Se espera que la oferta cierre el 31 de enero de 2025. La empresa planea utilizar los ingresos para redimir todas las notas garantizadas senior de segundo gravamen al 6.000% con vencimiento en 2026 y pagar las tarifas relacionadas. Además, los ingresos restantes, junto con el efectivo disponible, financiarán un dividendo especial único de 1.00 dólar por acción (aproximadamente 53 millones de dólares en total). Tanto la redención como el pago del dividendo están sujetos a la finalización de la oferta.
콘크리트 펌핑 홀딩스 (Nasdaq: BBCP)는 자회사가 제대로 확장하여 2032년에 만기되는 4억 2500만 달러의 고위험 담보 노트를 성공적으로 가격 책정했다고 발표했습니다. 이는 이전에 발표된 4억 달러에서 2500만 달러 증가한 것입니다. 이 노트는 연 7.500%의 이자율을 갖습니다.
이번 제공은 2025년 1월 31일에 마감될 예정입니다. 회사는 수익금을 사용하여 2026년에 만기되는 모든 6.000%의 고위험 담보 노트를 상환하고 관련 수수료를 지불할 예정입니다. 또한 남은 수익금과 현금을 통해 주당 1.00달러의 특별 일회성 배당금 (총 약 5300만 달러)을 지급할 것입니다. 상환 및 배당금 지급은 제공 완료 조건에 따릅니다.
Concrete Pumping Holdings (Nasdaq: BBCP) a annoncé que sa filiale Brundage-Bone Concrete Pumping Holdings a réussi à augmenter et à fixer le prix d'une offre privée de 425,0 millions de dollars d'obligations senior garanties de second rang échues en 2032, représentant une augmentation de 25,0 millions de dollars par rapport aux 400,0 millions de dollars précédemment annoncés. Les obligations porteront un taux d'intérêt annuel de 7,500%.
L'offre devrait se clôturer le 31 janvier 2025. La société prévoit d'utiliser les produits pour racheter toutes les obligations senior garanties de second rang à 6,000% échues en 2026 et de payer les frais associés. De plus, les produits restants, ainsi que des liquidités, financeront un dividende spécial unique de 1,00 dollar par action (environ 53 millions de dollars au total). Tant le rachat que le paiement du dividende sont conditionnés à la finalisation de l'offre.
Concrete Pumping Holdings (Nasdaq: BBCP) gab bekannt, dass ihre Tochtergesellschaft Brundage-Bone Concrete Pumping Holdings erfolgreich eine private Platzierung von 425,0 Millionen Dollar an gesicherten vorrangigen Zweitrang-Notes mit Fälligkeit 2032 vergrößert und bepreist hat, was einen Anstieg um 25,0 Millionen Dollar gegenüber den zuvor angekündigten 400,0 Millionen Dollar darstellt. Die Notes werden einen jährlichen Zinssatz von 7,500% tragen.
Die Platzierung wird voraussichtlich am 31. Januar 2025 abgeschlossen. Das Unternehmen plant, die Erlöse zu verwenden, um alle ausstehenden 6,000% gesicherten vorrangigen Zweitrang-Notes mit Fälligkeit 2026 einzulösen und die damit verbundenen Gebühren zu zahlen. Darüber hinaus werden die verbleibenden Erlöse zusammen mit verfügbaren Barmitteln eine einmalige Sonderdividende von 1,00 Dollar pro Aktie (insgesamt etwa 53 Millionen Dollar) finanzieren. Sowohl die Einlösung als auch die Dividendenzahlung sind von der Abschluss der Platzierung abhängig.
- Successful upsizing of note offering by $25 million to $425 million
- Special one-time dividend of $1.00 per share announced (approx. $53 million total)
- Higher interest rate on new notes (7.500%) compared to existing notes (6.000%)
- Increased debt load with $425 million new notes
Insights
The company's debt refinancing and special dividend announcement represents a significant financial restructuring. The upsized
The
For retail investors: Think of this like refinancing a mortgage - the company is taking on new debt at a higher rate but with a longer payback period, while also giving shareholders a bonus payment. The higher interest rate means increased annual costs, but the extended maturity provides more breathing room for future growth.
This refinancing move must be analyzed within the broader construction industry context. The extension of debt maturity to 2032 positions BBCP strategically for the long-term infrastructure spending cycle. The willingness of qualified institutional buyers to participate in this upsized offering (
The special dividend announcement, while positive for current shareholders, should be viewed cautiously. The construction services sector faces cyclical demands and maintaining financial flexibility is crucial. The
Simple explanation: The company is taking advantage of strong market confidence to reorganize its debt and reward shareholders, but is paying more in interest as a trade-off. This could be seen as a balanced approach between growth funding and shareholder returns, though it comes with increased financial obligations.
DENVER, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company”) announced today that Brundage-Bone Concrete Pumping Holdings Inc. (the “Issuer”), a wholly-owned subsidiary of the Company, has successfully upsized and priced its private offering of
The Company intends to use the net proceeds of the Notes to pay the redemption price for all of the Company’s outstanding
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered and sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
About Concrete Pumping Holdings
Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets based on fleet size, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 35 locations, and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K.
Important Notice Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “expect,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are based on management’s reasonable current assumptions, expectations and plans regarding the Company’s and the Issuer’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks and uncertainties, including the Company’s ability to execute on its strategic growth plan and other factors disclosed in the risk factor sections of the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, any of which may cause the actual results, levels of activity, performance or achievement of the Company or the Issuer to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events.
All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Company Contact:
Iain Humphries
Chief Financial Officer
1-303-289-7947
Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com
FAQ
What is the size and interest rate of BBCP's new notes offering?
When will BBCP's special dividend be paid and how much is it?
What is the maturity date of BBCP's new senior secured notes?
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When is BBCP's new notes offering expected to close?
