Construction Partners restates credit agreement for $425 million total

By Wendy Van Sickle

Columbus, Ohio, June 25 – Construction Partners, Inc. amended and restated its credit agreement with BBVA USA as agent on Thursday to provide for a $200 million term loan and a $225 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

Both tranches mature on June 24, 2026.

Borrowings bear interest at the Eurodollar rate plus 125 basis points, and the revolver’s commitment fee is 25 bps initially. The interest margin can range from 100 bps to 200 bps, and the commitment fee can range from 20 bps to 30 bps, depending on consolidated net leverage ratio.

There is an accordion feature providing for up to the greater of $120 million and the amount of the consolidated EBITDA of the borrowers and their subsidiaries for the immediately preceding four-fiscal-quarter period.

There is a maximum consolidated leverage ratio of 2.75 times.

The term loan and any incremental term loan will amortize in quarterly installments starting on Sept. 30, 2021 in an amount, subject, in each case, to adjustments for prior mandatory and voluntary prepayments of principal, equal to: 1.25% of the original principal amount on Sept. 30, 2021 and continuing on each of the following 11 quarter-end payment dates; 1.875% of the original principal amount on each of the next seven quarter-end payment dates; and all remaining principal due at maturity.

Proceeds are available for working capital and general corporate purposes.

Construction Partners in an infrastructure and road construction company based in Dothan, Ala. It is a portfolio company of SunTx Capital Partners, a Dallas-based private equity firm.

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