FORT
WORTH, Texas, Sept. 24,
2024 /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
existing $890 million Term Loan B
which matures May 13, 2029. The
repricing reduced the interest rate margin on the Term Loan B by an
additional 75 basis points to SOFR + 250 basis points with no
change to leverage, covenants, or maturity date. Assuming the same
level of indebtedness of $890 million
on its Term Loan B, AZZ expects the completion of this repricing to
result in annual interest savings of approximately $7 million per year.
Jason Crawford, Chief Financial
Officer commented, "We are pleased with the strong market demand
for our Term Loan B. Since the issuance of the Term Loan B in
May 2022, the Company has reduced the
interest rate margin by an aggregate of 185 basis points.
Subsequent to acquiring Precoat Metals in May 2022, our robust business performance and
strong cash flow generation has allowed AZZ to take a disciplined
approach to reducing debt, strengthening, and simplifying its
balance sheet and improving its leverage profile."
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
manufactured solutions, 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 manufactured solutions;
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 manufactured solutions 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 or Canada; 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 29, 2024,
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.