FORT
WORTH, Texas, Dec. 21,
2023 /PRNewswire/ -- AZZ Inc. (NYSE:
AZZ), the leading independent provider of hot-dip
galvanizing and coil coating solutions in North America, today announced the successful
repricing of its $400 million Senior
Secured Revolver due May 2027. The
repricing reduces AZZ's interest rate margin on its Senior Secured
Revolver across all leveraged-based pricing tiers, which range from
SOFR + 275 to 350 basis points and opening up at SOFR + 300 basis
points. In addition, AZZ successfully removed the Credit Spread
Adjustment ("CSA") of 10 basis points from the Senior Secured
Revolver. The repricing will result in significantly lower interest
costs through the maturity of the facility.
Philip Schlom, Chief Financial
Officer commented, "We are pleased to announce the successful
completion of our revolver repricing. Upon closing, AZZ will
immediately achieve a 125-basis point reduction in our Senior
Secured Revolver borrowing rate and an additional savings of 10
basis points on all borrowings under the facility from the removal
of the CSA. There were no other changes to the existing credit
agreement. Since acquiring Precoat Metals in May 2022, AZZ has reduced its principal balance
and interest rate on its Term Loan B, and the Company will continue
to focus on lowering its net debt to EBITDA leverage ratio to our
targeted range of below 3.0 times."
About AZZ Inc.
AZZ Inc. is the leading independent provider of hot-dip
galvanizing and coil coating solutions to a broad range of
end-markets. Collectively, our business segments provide
sustainable, unmatched metal coating solutions that enhance the
longevity and appearance of buildings, products and infrastructure
that are essential to everyday life.
Safe Harbor Statement
Certain statements herein about our expectations of
future events or results constitute forward-looking statements for
purposes of the safe harbor provisions of The Private Securities
Litigation Reform Act of 1995. You can identify forward-looking
statements by terminology such as "may," "could," "should,"
"expects," "plans," "will," "might," "would," "projects,"
"currently," "intends," "outlook," "forecasts," "targets,"
"anticipates," "believes," "estimates," "predicts," "potential,"
"continue," or the negative of these terms or other comparable
terminology. Such forward-looking statements are based on currently
available competitive, financial, and economic data and
management's views and assumptions regarding future events. Such
forward-looking statements are inherently uncertain, and investors
must recognize that actual results may differ from those expressed
or implied in the forward-looking statements. Forward-looking
statements speak only as of the date they are made and are subject
to risks that could cause them to differ materially from actual
results. Certain factors could affect the outcome of the matters
described herein. This press release may contain
forward-looking statements that involve risks and uncertainties
including, but not limited to, changes in customer demand for our
products and services, including demand by the construction
markets, the industrial markets, and the metal coatings markets. We
could also experience additional increases in labor costs,
components and raw materials including zinc and natural gas, which
are used in our hot-dip galvanizing process; supply-chain vendor
delays; customer requested delays of our products or services;
delays in additional acquisition opportunities; an increase in our
debt leverage and/or interest rates on our debt, of which a
significant portion is tied to variable interest rates;
availability of experienced management and employees to implement
AZZ's growth strategy; a downturn in market conditions in any
industry relating to the products we inventory or sell or the
services that we provide; economic volatility, including a
prolonged economic downturn or macroeconomic conditions such as
inflation or changes in the political stability in the United States and other foreign markets in
which we operate; acts of war or terrorism inside the United States or abroad; and other changes
in economic and financial conditions. AZZ has provided additional
information regarding risks associated with the business, including
in Part I, Item 1A. Risk Factors, in AZZ's Annual Report on Form
10-K for the fiscal year ended February 28,
2023, and other filings with the SEC, available for viewing
on AZZ's website at www.azz.com and on the SEC's website at
www.sec.gov. You are urged to consider these factors carefully when
evaluating the forward-looking statements herein and are cautioned
not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement.
These statements are based on information as of the
date hereof and AZZ assumes no obligation to update any
forward-looking statements, whether as a result of new information,
future events, or otherwise.
Investor Relations and Company
Contact:
David Nark, Senior Vice President of Marketing, Communications, and
Investor Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy
Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
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SOURCE AZZ Inc.