U.S. Concrete expands revolver, extends maturity date, lowers pricing

By Marisa Wong

Morgantown, W.Va., Nov. 19 – U.S. Concrete, Inc. entered into a second amended and restated loan agreement on Wednesday to increase revolving commitments, extend the maturity date and reduce interest rates, according to an 8-K filing with the Securities and Exchange Commission.

The agreement amends and restates the company’s first amended and restated loan agreement dated Oct. 29, 2013.

The company increased revolving commitments to $250 million from $175 million and extended the maturity date to the earlier of Nov. 18, 2020, and 60 days prior to the maturity date of its 8˝% senior secured notes due 2018 or any refinancing of that debt.

The restated loan agreement also includes an accordion feature that allows for increases in the total revolving commitments by as much as $100 million.

In addition, the amendment lowers the applicable margin for Libor loans to a range of 125 basis points to 175 bps.

The amendment also modifies the definition of borrowing base to impose a cap on the borrowing base in connection with the ABL cap set forth in the company’s 8˝% notes and give borrowing base credit to the value of certain machinery if the lenders obtain first-priority liens on that machinery.

Bank of America, NA is the agent.

Euless, Texas-based U.S. Concrete provides ready-mixed concrete and aggregate products to the construction industry.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.