IES Holdings Announces New $300 Million Credit Facility
IES Holdings (NASDAQ: IESC) has announced a significant enhancement to its credit facilities, amending and restating its Credit and Security Agreement. The company has doubled its revolving credit facility to $300 million from $150 million, with an extended maturity date to January 21, 2030.
The amended agreement transitions IES to a cash flow-based facility, providing increased borrowing capacity compared to the previous asset-based structure. Wells Fargo Bank serves as Administrative Agent, while Wells Fargo Securities and Fifth Third Bank act as Joint Lead Arrangers and Bookrunners.
The expanded credit facility aims to strengthen IES's ability to execute its capital allocation strategy, providing enhanced liquidity and flexibility for organic growth, acquisitions, share repurchases, and other investment opportunities.
IES Holdings (NASDAQ: IESC) ha annunciato un'importante miglioria alle sue linee di credito, modificando e riformulando il suo Accordo di Credito e Sicurezza. L'azienda ha raddoppiato la sua linea di credito revolving a 300 milioni di dollari rispetto ai 150 milioni di dollari, con una data di scadenza estesa al 21 gennaio 2030.
Il contratto emendato fa transitare IES verso una struttura di credito basata sul flusso di cassa, offrendo una maggiore capacità di indebitamento rispetto alla precedente struttura basata sugli attivi. Wells Fargo Bank funge da Agente Amministrativo, mentre Wells Fargo Securities e Fifth Third Bank agiscono come Coordinatori Principali e Bookrunners.
La linea di credito ampliata mira a rafforzare la capacità di IES di attuare la sua strategia di allocazione del capitale, offrendo maggiore liquidità e flessibilità per la crescita organica, acquisizioni, riacquisti di azioni e altre opportunità di investimento.
IES Holdings (NASDAQ: IESC) ha anunciado una mejora significativa en sus líneas de crédito, enmendando y reformatando su Acuerdo de Crédito y Seguridad. La compañía ha duplicado su línea de crédito revolvente a 300 millones de dólares desde 150 millones de dólares, con una fecha de vencimiento extendida hasta el 21 de enero de 2030.
El acuerdo enmendado transforma a IES en una facilidad basada en flujo de caja, proporcionando una mayor capacidad de endeudamiento en comparación con la estructura anterior basada en activos. Wells Fargo Bank actúa como Agente Administrativo, mientras que Wells Fargo Securities y Fifth Third Bank son los Coordenadores Principales y Bookrunners.
La línea de crédito ampliada tiene como objetivo fortalecer la capacidad de IES para ejecutar su estrategia de asignación de capital, proporcionando una mayor liquidez y flexibilidad para el crecimiento orgánico, adquisiciones, recompra de acciones y otras oportunidades de inversión.
IES Holdings (NASDAQ: IESC)는 신용 시설에 대한 중요한 향상을 발표하며, 신용 및 담보 계약을 수정하고 재작성했습니다. 회사는 회전 신용 한도를 1억 5천만 달러에서 3억 달러로 확대했습니다, 만기일은 2030년 1월 21일로 연장되었습니다.
수정된 계약은 IES를 현금 흐름 기반 시설로 전환시켜 이전의 자산 기반 구조에 비해 대출 능력을 증가시킵니다. 웰스 파고 은행은 관리 대리인으로 활동하며, 웰스 파고 증권과 퍼스트 서드 은행이 공동 주관사 및 북러너 역할을 합니다.
확대된 신용 시설은 IES의 자본 배분 전략을 수행할 수 있는 능력을 강화하려고 하며, 유기적 성장, 인수, 자사주 매입, 기타 투자 기회를 위한 향상된 유동성과 유연성을 제공합니다.
IES Holdings (NASDAQ: IESC) a annoncé une amélioration significative de ses lignes de crédit, en modifiant et révisant son Accord de Crédit et de Sécurité. La société a doublé sa ligne de crédit renouvelable à 300 millions de dollars contre 150 millions de dollars, avec une date d'échéance prolongée jusqu'au 21 janvier 2030.
L'accord amendé fait passer IES à une structure de crédit basée sur le flux de trésorerie, offrant une capacité d'emprunt accrue par rapport à la structure précédente basée sur les actifs. Wells Fargo Bank agit en tant qu'Agent Administratif, tandis que Wells Fargo Securities et Fifth Third Bank agissent en tant que Co-Arrangeurs Principaux et Bookrunners.
La ligne de crédit élargie vise à renforcer la capacité d'IES à exécuter sa stratégie d'allocation de capital, en offrant une liquidité et une flexibilité accrues pour la croissance organique, les acquisitions, les rachats d'actions et d'autres opportunités d'investissement.
IES Holdings (NASDAQ: IESC) hat eine wesentliche Verbesserung seiner Kreditlinien bekannt gegeben, indem es seinen Kredit- und Sicherungsvereinbarung geändert und neu formuliert hat. Das Unternehmen hat seine revolvierende Kreditlinie auf 300 Millionen Dollar verdoppelt, gegenüber 150 Millionen Dollar, mit einem verlängerten Fälligkeitsdatum bis zum 21. Januar 2030.
Die geänderte Vereinbarung verwandelt IES in eine flussbasiertes Kreditstruktur, die eine erhöhte Kreditaufnahme im Vergleich zur vorherigen aktivbasierte Struktur ermöglicht. Wells Fargo Bank fungiert als Verwaltungsagent, während Wells Fargo Securities und Fifth Third Bank als gemeinsame Hauptarrangeure und Bookrunner agieren.
Die erweiterte Kreditlinie ist darauf ausgelegt, die Fähigkeit von IES zu stärken, seine Kapitalzuweisungsstrategie umzusetzen und bietet verbesserte Liquidität und Flexibilität für organisches Wachstum, Übernahmen, Aktienrückkäufe und andere Investitionsmöglichkeiten.
- Doubled credit facility to $300 million from $150 million
- Extended maturity date to January 21, 2030
- Transition to cash flow-based facility enabling increased borrowing capacity
- Enhanced financial flexibility for acquisitions and share repurchases
- None.
Insights
The doubling of IES Holdings' credit facility to
The extended maturity to 2030 provides exceptional long-term visibility and stability, while the expanded lending group, led by Wells Fargo and Fifth Third Bank, demonstrates increased institutional confidence in IES's business model and growth trajectory. For investors, this restructuring offers several key advantages:
- Enhanced acquisition capacity: The larger facility provides more firepower for strategic M&A opportunities in the electrical and mechanical services sector
- Improved capital allocation flexibility: The cash flow-based structure typically allows for more efficient use of capital and potentially lower borrowing costs
- Stronger share repurchase capabilities: Additional liquidity could support more aggressive share buyback programs
- Greater operational agility: The facility's structure enables faster response to market opportunities without collateral constraints
The timing of this refinancing, amid the current interest rate environment, suggests proactive management and could position IES advantageously for both organic growth and strategic opportunities in the infrastructure and construction services markets. The expanded facility's structure aligns well with IES's
HOUSTON, Jan. 22, 2025 (GLOBE NEWSWIRE) -- IES Holdings, Inc. (or “IES” or the “Company”) (NASDAQ: IESC) today announced that it has amended and restated its existing Credit and Security Agreement, increasing the commitment amount of the revolving credit facility to
Jeff Gendell, IES’s Chairman and Chief Executive Officer, said, “We appreciate the confidence that Wells Fargo, Fifth Third and our new banking partners have shown in IES through this larger and more flexible credit facility. This facility strengthens our ability to execute on our capital allocation strategy by providing us the liquidity and flexibility to pursue our strategic priorities, including organic growth, acquisitions, share repurchases and other investment opportunities.”
About IES Holdings, Inc.
IES designs and installs integrated electrical and technology systems and provides infrastructure products and services to a variety of end markets, including data centers, residential housing, and commercial and industrial facilities. Our more than 9,000 employees serve clients in the United States. For more information about IES, please visit www.ies-co.com.
Company Contact:
Tracy McLauchlin
Chief Financial Officer
IES Holdings, Inc.
(713) 860-1500
Investor Relations Contact:
Robert Winters or Stephen Poe
Alpha IR Group
312-445-2870
IESC@alpha-ir.com
Certain statements in this release may be deemed “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, all of which are based upon various estimates and assumptions that the Company believes to be reasonable as of the date hereof. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “could,” “should,” “expect,” “plan,” “project,” “intend,” “anticipate,” “believe,” “seek,” “estimate,” “predict,” “potential,” “pursue,” “target,” “continue,” the negative of such terms or other comparable terminology. These statements involve risks and uncertainties that could cause the Company’s actual future outcomes to differ materially from those set forth in such statements. Such risks and uncertainties include, but are not limited to, a general reduction in the demand for our products or services; changes in general economic conditions, including supply chain constraints, high rates of inflation, changes in consumer sentiment, elevated interest rates, and market disruptions resulting from a number of factors, including geo-political events; competition in the industries in which we operate, which could result in the loss of one or more customers or lead to lower margins on new projects; our ability to successfully manage and execute projects, the cost and availability of qualified labor and the ability to maintain positive labor relations, and our ability to pass along increases in the cost of commodities used in our business; supply chain disruptions due to our suppliers' access to materials and labor, their ability to ship products timely, or credit or liquidity problems they may face; inaccurate estimates used when entering into fixed-price contracts, the possibility of errors when estimating revenue and progress to date on percentage-of-completion contracts, and complications associated with the incorporation of new accounting, control and operating procedures; our ability to enter into, and the terms of, future contracts; the existence of a small number of customers from whom we derive a meaningful portion of our revenues; reliance on third parties, including subcontractors and suppliers, to complete our projects; the inability to carry out plans and strategies as expected, including the inability to identify and complete acquisitions that meet our investment criteria, or the subsequent underperformance of those acquisitions; challenges integrating new businesses into the Company or new types of work, products or processes into our segments; backlog that may not be realized or may not result in profits; failure to adequately recover on contract change orders or claims against customers; closures or sales of our facilities resulting in significant future charges or a significant disruption of our operations; the impact of future epidemics or pandemics on our business; an increased cost of surety bonds affecting margins on work and the potential for our surety providers to refuse bonding or require additional collateral at their discretion; the impact of seasonality, adverse weather conditions, and climate change; fluctuations in operating activity due to factors such as cyclicality, downturns in levels of construction or the housing market, and differing regional economic conditions; difficulties in managing our billings and collections; accidents resulting from the physical hazards associated with our work and the potential for accidents; the possibility that our current insurance coverage may not be adequate or that we may not be able to obtain policies at acceptable rates; the effect of litigation, claims and contingencies, including warranty losses, damages or other latent defect claims in excess of our existing reserves and accruals; costs and liabilities under existing or potential future laws and regulations, including those laws and regulations related to the environment and climate change, as well as the inability to transfer, renew and obtain electrical and other professional licenses; interruptions to our information systems and cyber security or data breaches; expenditures to conduct environmental remediation activities required by certain environmental laws and regulations; loss of key personnel, ineffective transition of new management, or general labor constraints; credit and capital market conditions, including changes in interest rates that affect the cost of construction financing and mortgages, and the inability of some of our customers to obtain sufficient financing at acceptable rates, which could lead to project delays or cancellations; limitations on our ability to access capital markets and generate cash from operations to fund our capital needs; the impact on our effective tax rate or cash paid for taxes from changes in tax positions we have taken or changes in tax laws; difficulty in fulfilling the covenant terms of our revolving credit facility, including liquidity, and other financial requirements, which could result in a default and acceleration of any indebtedness under such revolving credit facility; reliance on certain estimates and assumptions that may differ from actual results in the preparation of our financial statements; uncertainties inherent in the use of percentage-of-completion accounting, which could result in the reduction or elimination of previously recorded revenues and profits; the recognition of potential goodwill, long-lived assets and other investment impairments; the existence of a controlling shareholder, who has the ability to take action not aligned with other shareholders or to dispose of all or a significant portion of the shares of our common stock it holds, which may trigger certain change of control provisions in a number of our material agreements; the relatively low trading volume of our common stock, which could increase the volatility of our stock price and could make it more difficult for shareholders to sell a substantial number of shares for the same price at which shareholders could sell a smaller number of shares; the possibility that we issue additional shares of common stock, preferred stock or convertible securities that will dilute the percentage ownership interest of existing stockholders and may dilute the value per share of our common stock; the potential for substantial sales of our common stock, which could adversely affect our stock price; the impact of increasing scrutiny and changing expectations from investors and customers, or new or changing regulations, with respect to environmental, social and governance practices; the cost or effort required for our shareholders to bring certain claims or actions against us, as a result of our designation of the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain types of actions and proceedings; and the possibility that our internal controls over financial reporting and our disclosure controls and procedures may not prevent all possible errors that could occur, as well as other risk factors discussed in the Company’s annual report on Form 10-K for the year ended September 30, 2024 and in the Company’s other reports on file with the SEC. You should understand that such risk factors could cause future outcomes to differ materially from those experienced previously or those expressed in such forward-looking statements. The Company undertakes no obligation to publicly update or revise any information or any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Forward-looking statements are provided in this press release pursuant to the safe harbor established under the Private Securities Litigation Reform Act of 1995 and should be evaluated in the context of the estimates, assumptions, uncertainties, and risks described herein.
General information about IES Holdings, Inc. can be found at http://www.ies-co.com under "Investor Relations." The Company's annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, as well as any amendments to those reports, are available free of charge through the Company's website as soon as reasonably practicable after they are filed with, or furnished to, the SEC.
FAQ
What is the new credit facility amount for IES Holdings (IESC)?
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How has IES Holdings' (IESC) borrowing structure changed with the new credit facility?
What are the intended uses for IES Holdings' (IESC) new $300 million credit facility?
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