Martin Marietta Announces Pricing Terms of Debt Offering

Rhea-AI Summary

Martin Marietta Materials (NYSE:MLM) has priced its offering of $2.5 billion in senior notes, comprising three series: $700 million of 0.650% due 2023, $900 million of 2.400% due 2031, and $900 million of 3.200% due 2051. The proceeds from the 2031 and 2051 notes are allocated for the acquisition of the Lehigh West Region Business, while the 2023 notes will finance general corporate purposes. The deal is expected to close on July 2, 2021. Deutsche Bank, J.P. Morgan, Truist, and Wells Fargo will serve as underwriters.

Positive

• Successfully raised $2.5 billion through senior notes issuance.
• Proceeds will support strategic acquisition, enhancing business growth.
• Interest rates for notes are relatively low, allowing for cost-effective financing.

Negative

• Potential increase in debt load following the acquisition financing.
• Dependence on successful acquisition for future revenue growth.

RALEIGH, N.C., June 21, 2021 (GLOBE NEWSWIRE) -- Martin Marietta Materials, Inc. (NYSE:MLM) (“Martin Marietta” or the “Company”) announced today the pricing of its offering of $700 million aggregate principal amount of 0.650% Senior Notes due 2023 (the “2023 Notes”), $900 million aggregate principal amount of 2.400% Senior Notes due 2031 (the “2031 Notes”) and $900 million aggregate principal amount of 3.200% Senior Notes due 2051 (the “2051 Notes” and, together with the 2023 Notes and the 2031 Notes, the “Notes”). The 2023 Notes will mature on July 15, 2023, will have an interest rate of 0.650% per annum and will be issued at 99.988% of par value.  The 2031 Notes will mature on July 15, 2031, will have an interest rate of 2.400% per annum and will be issued at 99.937% of par value.  The 2051 Notes will mature on July 15, 2051, will have an interest rate of 3.200% per annum and will be issued at 99.197% of par value.  Interest on each series of Notes will be paid semiannually on January 15 and July 15, commencing January 15, 2022. The Notes will be sold pursuant to Martin Marietta’s shelf registration statement, base prospectus and prospectus supplement on file with the Securities and Exchange Commission (“SEC”).

The net proceeds of the 2031 Notes and the 2051 Notes are expected to be used, together with cash on hand, to pay the consideration for the Company’s previously announced acquisition of the Lehigh West Region Business (the “Acquisition”) and to pay related fees and expenses. The net proceeds of the 2023 Notes are expected to be used for general corporate purposes, which may include funding acquisitions (including without limitation the Acquisition) or repaying indebtedness. Closing of the offering is expected to occur on July 2, 2021, subject to the satisfaction of customary closing conditions.

Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC will serve as underwriters and joint book-running managers for the offering.

Martin Marietta has filed a shelf registration statement on Form S-3 (including a base prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and the prospectus supplement thereto and the other documents that Martin Marietta has filed or will file with the SEC for more complete information about Martin Marietta and this offering. The offering will be made only pursuant to the terms of the relevant prospectus supplement (including the prospectus). These documents will be available at no charge by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, these documents will be made available upon request to any underwriter participating in the offering. Interested parties may obtain a prospectus and the related prospectus supplement from Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attn: Prospectus Group by telephone at (800) 503-4611 or by email at prospectus.CPDG@db.com; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attn: Investment Grade Syndicate Desk—3^rd Floor or by telephone at (212) 834-4533; Truist Securities, Inc., 303 Peachtree Street, Atlanta, Georgia 30308, Attention: Prospectus Dept or by telephone at (800) 685-4786; and Wells Fargo Securities, LLC, 608 2^nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attention: WFS Customer Service by telephone at (800) 645-3751 or by email at wfscustomerservice@wellsfargo.com.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Offers of securities will be made only by means of a prospectus filed with the SEC. The prospectus is part of a shelf registration statement that has become effective under the Securities Act of 1933, as amended.

Company Description

Martin Marietta, a member of the S&P 500 Index, is an American-based company and a leading supplier of building materials, including aggregates, cement, ready mixed concrete and asphalt. Through a network of operations spanning 26 states, Canada and the Bahamas, dedicated Martin Marietta teams supply the resources for building the solid foundations on which our communities thrive. Martin Marietta’s Magnesia Specialties business produces high-purity magnesia and dolomitic lime products used worldwide in environmental, industrial, agricultural and specialty applications.

Investor Contact:
Suzanne Osberg
Vice President, Investor Relations
(919) 783-4691
Suzanne.Osberg@martinmarietta.com

MLM-G

Cautionary Statement About Forward-Looking Statements

Investors are cautioned that all statements in this release that relate to the future involve risks and uncertainties, and are based on assumptions that the Company believes in good faith are reasonable but which may be materially different from actual results. These statements, which are forward-looking statements under the Private Securities Litigation Reform Act of 1995, give the investor the Company’s expectations or forecasts of future events. You can identify these statements by the fact that they do not relate only to historical or current facts. They may use words such as “guidance”, “anticipate”, “expect”, “should”, “believe”, “will”, and other words of similar meaning in connection with future events or future operating or financial performance. Any or all of our forward-looking statements here and in other publications may turn out to be wrong.

Statements and assumptions on future revenues, income and cash flows, performance, economic trends, the outcome of litigation, regulatory compliance and environmental remediation cost estimates are examples of forward-looking statements. Numerous factors could affect our forward-looking statements and actual performance. In addition, other risks and uncertainties not presently known to us or that we currently consider immaterial could affect the accuracy of our forward-looking statements.

Except as required by law, we undertake no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this press release.

You should consider these forward-looking statements in light of risk factors discussed in the preliminary prospectus supplement filed with the SEC on June 21, 2021 and those in our Annual Report on Form 10-K for the year ended December 31, 2020 and other periodic filings made with the SEC. All of our forward-looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to us or that we consider immaterial could affect the accuracy of our forward-looking statements, or adversely affect or be material to the Company. The Company assumes no obligation to update any such forward-looking statements. 

FAQ

What is the purpose of the senior notes offering by Martin Marietta (MLM)?

The senior notes offering aims to finance the acquisition of the Lehigh West Region Business and cover related expenses.

What are the maturity dates and interest rates for the notes issued by Martin Marietta (MLM)?

The notes include $700 million due 2023 at 0.650%, $900 million due 2031 at 2.400%, and $900 million due 2051 at 3.200%.

When is the expected closing date for Martin Marietta's (MLM) notes offering?

The closing of the offering is anticipated on July 2, 2021, subject to customary conditions.

Who are the underwriters for Martin Marietta's (MLM) senior notes offering?

The underwriters include Deutsche Bank, J.P. Morgan, Truist, and Wells Fargo.