L.B. Foster Company (the "Company") (NASDAQ: FSTR), a leading
provider of products and services for the rail industry and
solutions to support critical infrastructure projects, today
announced that on August 13, 2021, it entered into a Fourth Amended
and Restated Credit Agreement (“Credit Agreement”) to, among other
considerations, extend the facility maturity date to August 13,
2026, increase borrowing capacity to $130 million, improve pricing,
and provide a more accommodating covenant package. The Credit
Agreement is available for working capital financing, capital
expenditures, issuance of letters of credit, permitted
acquisitions, and general corporate purposes.
John Kasel, President and Chief Executive
Officer, said, "We are very pleased with the outcome of the credit
agreement negotiations. The agreed terms reduce our current cost of
borrowing by approximately 200 basis points and greatly increase
the financial flexibility needed to execute our strategy. We are
encouraged by the significant growth opportunities emerging in our
core served markets, in particular the demand for technologies that
enable the digital railway, as well as precast concrete and
transportation infrastructure. This credit facility provides the
funding needed to avail ourselves of those opportunities. I want to
thank Bill Thalman, our Chief Financial Officer, and the L.B.
Foster finance and legal teams for their efforts in completing this
important initiative. I also want to recognize and thank our
banking partners for their ongoing confidence in the long-term
growth potential of L.B. Foster."
The Company’s five-bank syndicate is led by PNC
Bank, N.A. as Administrative Agent, with Citizens Bank, N.A. and
Wells Fargo Bank N.A. as Co-Syndication Agents, and Bank of America
and BMO Harris Bank, N.A. as participants. Additional information
concerning the revolving credit facility can be found in the
Current Report on Form 8-K filed with the Securities and Exchange
Commission on August 16, 2021.
About L.B. Foster Company
L.B. Foster Company and its subsidiaries provide
products and services for the rail industry and solutions to
support critical infrastructure projects. The Company’s innovative
engineering and product development solutions address the safety,
reliability, and performance of its customers’ challenging
requirements. The Company maintains locations in North America,
South America, Europe, and Asia. For more information, please visit
www.lbfoster.com.
This release may contain “forward-looking”
statements within the meaning of Section 21E of the Securities
Exchange Act of 1934, as amended, and Section 27A of the Securities
Act of 1933, as amended. Forward-looking statements provide
management's current expectations of future events based on certain
assumptions and include any statement that does not directly relate
to any historical or current fact. Sentences containing words such
as “believe,” “intend,” “plan,” “may,” “expect,” “should,” “could,”
“anticipate,” “estimate,” “predict,” “project,” or their negatives,
or other similar expressions of a future or forward-looking nature
generally should be considered forward-looking statements.
Forward-looking statements in this earnings release are based on
management's current expectations and assumptions about future
events that involve inherent risks and uncertainties and may
concern, among other things, the Company’s expectations relating to
our strategy, goals, projections, and plans regarding our financial
position, liquidity, capital resources, and results of operations
and decisions regarding our strategic growth initiatives, market
position, and product development. While the Company considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory, and other risks and uncertainties, most of which are
difficult to predict and many of which are beyond the Company’s
control. The Company cautions readers that various factors could
cause the actual results of the Company to differ materially from
those indicated by forward-looking statements. Accordingly,
investors should not place undue reliance on forward-looking
statements as a prediction of actual results. Among the factors
that could cause the actual results to differ materially from those
indicated in the forward-looking statements are risks and
uncertainties related to: the COVID-19 pandemic, including the
impact of any worsening of the pandemic, or the emergence of new
variants of the virus, on our financial condition or results of
operations, and any future global health crises, and the related
social, regulatory, and economic impacts and the response thereto
by the Company, our employees, our customers, and national, state,
or local governments; a continued deterioration in the prices of
oil and natural gas and the related impact on the upstream and
midstream energy markets, which could result in further cost
mitigation actions, including additional shutdowns or furlough
periods; a continuation or worsening of the adverse economic
conditions in the markets we serve, whether as a result of the
current COVID-19 pandemic, including its impact on travel and
demand for oil and gas, the continued deterioration in the prices
for oil and gas, governmental travel restrictions, project delays,
and budget shortfalls, or otherwise; volatility in the global
capital markets, including interest rate fluctuations, which could
adversely affect our ability to access the capital markets on terms
that are favorable to us; restrictions on our ability to draw on
our credit agreement, including as a result of any future inability
to comply with restrictive covenants contained therein; a
continuing decrease in freight or transit rail traffic, including
as a result of the COVID-19 pandemic; environmental matters,
including any costs associated with any remediation and monitoring;
the risk of doing business in international markets, including
compliance with anti-corruption and bribery laws, foreign currency
fluctuations and inflation, and trade restrictions or embargoes;
our ability to effectuate our strategy, including cost reduction
initiatives, and our ability to effectively integrate acquired
businesses or to divest businesses, such as the 2020 disposition of
the IOS Test and Inspection Services business and acquisition of
LarKen Precast, LLC, and to realize anticipated benefits; costs of
and impacts associated with shareholder activism; continued
customer restrictions regarding the on-site presence of third party
providers due to the COVID-19 pandemic; the timeliness and
availability of materials from our major suppliers, including any
continuation or worsening of the disruptions in the supply chain
experienced as a result of the COVID-19 pandemic, as well as the
impact on our access to supplies of customer preferences as to the
origin of such supplies, such as customers’ concerns about conflict
minerals; labor disputes; cyber-security risks such as data
security breaches, malware, ransomware, “hacking,” and identity
theft, including as experienced in 2020, which could disrupt our
business and may result in misuse or misappropriation of
confidential or proprietary information, and could result in the
significant disruption or damage to our systems, increased costs
and losses, or an adverse effect to our reputation; the
effectiveness of our continued implementation of an enterprise
resource planning system; changes in current accounting estimates
and their ultimate outcomes; the adequacy of internal and external
sources of funds to meet financing needs, including our ability to
negotiate any additional necessary amendments to our credit
agreement or the terms of any new credit agreement, and reforms
regarding the use of LIBOR as a benchmark for establishing
applicable interest rates; the Company’s ability to manage its
working capital requirements and indebtedness; domestic and
international taxes, including estimates that may impact taxes;
domestic and foreign government regulations, including tariffs;
economic conditions and regulatory changes caused by the United
Kingdom’s exit from the European Union; a lack of state or federal
funding for new infrastructure projects; an increase in
manufacturing or material costs; the loss of future revenues from
current customers; and risks inherent in litigation and the outcome
of litigation and product warranty claims. Should one or more of
these risks or uncertainties materialize, or should the assumptions
underlying the forward-looking statements prove incorrect, actual
outcomes could vary materially from those indicated. Significant
risks and uncertainties that may affect the operations,
performance, and results of the Company’s business and
forward-looking statements include, but are not limited to, those
set forth under Item 1A, “Risk Factors,” and elsewhere in our
Annual Report on Form 10-K for the year ended December 31, 2020, or
as updated and/or amended by our other current or periodic filings
with the Securities and Exchange Commission.
Investor Relations:Stephanie
Listwak(412) 928-3417investors@lbfoster.comL.B. Foster Company415
Holiday DriveSuite 100Pittsburgh, PA 15220
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