FRTA - FRTA STOCK NEWS

Forterra, Inc. (NASDAQ: FRTA), a leading U.S. manufacturer of water and drainage infrastructure products, received an upgrade from S&P Global Ratings on October 2, 2020. The company's issuer credit rating improved from B- to B, with the outlook remaining stable. CFO Charlie Brown highlighted the upgrade reflects recent significant improvements and ongoing strategies aimed at expanding margins and reducing debt. Forterra aims to achieve a leverage target of 3.0-3.5x in the near term, leveraging increased cash flow for debt reduction.

Forterra, Inc. (NASDAQ: FRTA) announced that Moody's upgraded Forterra Finance, LLC's Corporate Family Rating from B3 to B1, and senior secured ratings from B3 to B2. The Probability of Default Rating also improved from B3-PD to B1-PD, with Speculative Grade Liquidity Rating raised from SGL-3 to SGL-2. The upgrade reflects Forterra's strong earnings growth and debt reduction efforts. CEO Charlie Brown noted the company aims to further improve margins and reduce debt to achieve a leverage target of 3.0-3.5x shortly.

Forterra (NASDAQ: FRTA) has announced the pricing of a secondary offering of 10 million shares of its common stock at $13.50 each, with proceeds going to its largest stockholder, an affiliate of Lone Star Funds. The offering includes an option for underwriters to purchase an additional 1.5 million shares within 30 days. The offering is expected to close on September 21, 2020. Underwriters include Credit Suisse, BofA Securities, and Citigroup. This sale does not involve new shares from the company itself.

Forterra, Inc. (NASDAQ: FRTA) announced a voluntary prepayment of $100 million under its senior term loan on September 17, 2020. This will bring its total voluntary prepayments in 2020 to approximately $139 million. The remaining balance of the senior term loan will be around $485 million. CEO Karl Watson, Jr. highlighted that this action aligns with their guidance of $125 to $175 million in voluntary prepayments for the year, emphasizing the company's focus on improving cash generation and reducing long-term debt.

Forterra (NASDAQ: FRTA) announced a secondary offering of 10,000,000 shares by its largest stockholder, an affiliate of Lone Star Funds. The underwriters have a 30-day option to purchase an additional 1,500,000 shares. The Selling Stockholder will retain all proceeds from the sale, while no shares will be sold by the Company. Credit Suisse, BofA Securities, and Citigroup are acting as joint book-running managers. The Company has a shelf registration statement effective since December 27, 2019, with relevant documents available through the SEC's EDGAR system.

Forterra, Inc. (NASDAQ: FRTA), a key player in water infrastructure products, announced a favorable arbitration decision regarding a $100 million earnout claim from HeidelbergCement related to a previous acquisition. The arbitrator ruled no payment was due, allowing Forterra to focus on its operational goals. CEO Karl Watson, Jr. highlighted substantial improvements in their financials, boasting a 7% sales increase and a shift from a $34 million net loss to a $28 million net income compared to the same period last year. Additionally, the company plans to prepay $125 to $175 million of long-term debt in 2020.

Forterra reported a 3.9% increase in net sales to $426.2 million for Q2 2020, alongside a significant 23.0% rise in gross profit to $105.6 million. Net income surged to $27.1 million from $3.0 million year-over-year. Adjusted EBITDA also rose to $85.9 million, reflecting improved margins. The company repaid $180 million in debt and amended its revolving credit facility to enhance liquidity. Despite positive results, CEO Karl Watson indicated uncertainty about future demand due to the ongoing COVID-19 pandemic. Forterra aims to reduce net leverage from 5.0x to between 3.0x and 3.5x in the coming years.

Forterra has successfully closed its offering of $500 million in senior secured notes due 2025, carrying a fixed interest rate of 6.50%, payable semi-annually. The notes are secured by first and second-priority liens on collateral, primarily consisting of assets from the Term Loan Facility and the Asset-Based Revolving Credit Facility. The proceeds from the offering will be utilized to repay a portion of the outstanding Term Loan and cover related fees. Forterra specializes in manufacturing water and drainage products across the U.S. and Eastern Canada.

Forterra, Inc. (NASDAQ: FRTA) will announce its Q2 2020 financial results after market close on July 27, 2020. A conference call for investors is scheduled for July 28, 2020, at 10:00 a.m. EDT, hosted by CEO Karl Watson, Jr. and CFO Charlie Brown. Interested participants can join via a toll-free number or through a webcast, with replay available within 24 hours. Forterra is a leading manufacturer of water and drainage products in the U.S. and Eastern Canada, serving a wide range of customers including contractors and municipalities.