Arcosa, Inc. Announces Proposed Offering of $600 Million of Senior Notes
August 12 2024 - 6:24AM
Business Wire
Arcosa, Inc. (NYSE: ACA) (“Arcosa”) today announced that it
intends to commence, subject to market conditions and other
factors, a private offering of $600.0 million aggregate principal
amount of senior notes due 2032 (the “Notes”).
Arcosa intends to use the net proceeds from the offering,
together with expected borrowings under the previously announced
Term Loan B Facility due 2031, to fund the $1.2 billion purchase
price of the previously announced acquisition of the construction
materials business of Stavola Holding Corporation and its
affiliated entities (the “Transaction”) and to use any remaining
net proceeds to repay amounts outstanding under Arcosa’s revolving
credit facility.
The Notes will be senior unsecured obligations of Arcosa and
will initially be guaranteed on a senior unsecured basis by each of
Arcosa’s domestic subsidiaries that is a guarantor under its senior
credit facility.
The Notes will be subject to a special mandatory redemption if
the Transaction is not consummated on or before the timeframe set
forth in the indenture governing the Notes.
The Notes and the related guarantees are being offered and sold
only to persons reasonably believed to be “qualified institutional
buyers” in reliance on Rule 144A under the Securities Act of 1933,
as amended (the “Securities Act”), and outside the United States to
certain non-U.S. persons in compliance with Regulation S under the
Securities Act. The Notes and the related guarantees have not been
and will not be registered for sale under the Securities Act or the
securities laws of any other jurisdiction and may not be offered or
sold in the United States absent registration or an applicable
exemption from registration requirements.
This press release shall not constitute an offer to sell, or a
solicitation of an offer to buy, the Notes or any other securities,
and shall not constitute an offer to sell, solicitation of an offer
to buy, or sale of any securities in any jurisdiction in which such
offer, solicitation or sale would be unlawful. Any offers of the
Notes will be made only by means of a private offering
memorandum.
About Arcosa
Arcosa, Inc., headquartered in Dallas, Texas, is a provider of
infrastructure-related products and solutions with leading
positions in construction, engineered structures, and
transportation markets. Arcosa reports its financial results in
three principal business segments: Construction Products,
Engineered Structures, and Transportation Products. For more
information, visit www.arcosa.com.
Cautionary Statements About Forward-Looking
Information
Some statements in this release, which are not historical facts,
are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements include statements about Arcosa’s estimates,
expectations, beliefs, intentions or strategies for the future.
Arcosa uses the words “anticipates,” “assumes,” “believes,”
“estimates,” “expects,” “intends,” “forecasts,” “may,” “will,”
“should,” “guidance,” “outlook,” “strategy,” “plans,” “goal,” and
similar expressions to identify these forward-looking statements.
Forward-looking statements speak only as of the date of this
release, and Arcosa expressly disclaims any obligation or
undertaking to disseminate any updates or revisions to any
forward-looking statement contained herein, except as required by
federal securities laws. Forward-looking statements are based on
management’s current views and assumptions and involve risks and
uncertainties that could cause actual results to differ materially
from historical experience or present expectations, including but
not limited to, statements regarding the anticipated consummation
of the offering, the intended use of offering proceeds, the
anticipated terms of the securities described herein, other aspects
of the offering, the contingencies related to the special mandatory
redemption, the failure to successfully complete and integrate
acquisitions, including the Transaction, or divest any business, or
failure to achieve the expected benefits of acquisitions or
divestitures; market conditions and customer demand for Arcosa’s
business products and services; the cyclical nature of, and
seasonal or weather impact on, the industries in which Arcosa
competes; competition and other competitive factors; governmental
and regulatory factors; changing technologies; availability of
growth opportunities; market recovery; ability to improve margins;
the impact of inflation and costs of materials; assumptions
regarding achievements of the expected benefits from the Inflation
Reduction Act; the delivery or satisfaction of any backlog or firm
orders; the impact of pandemics on Arcosa’s business; and Arcosa’s
ability to execute its long-term strategy, and such forward-looking
statements are not guarantees of future performance. For further
discussion of such risks and uncertainties, see “Risk Factors” and
the “Forward-Looking Statements” section of “Management's
Discussion and Analysis of Financial Condition and Results of
Operations” in Arcosa's Form 10-K for the year ended December 31,
2023 and as may be revised and updated by Arcosa's Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K.
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version on businesswire.com: https://www.businesswire.com/news/home/20240809792719/en/
MEDIA CONTACT: media@arcosa.com INVESTOR CONTACTS Gail M. Peck
Chief Financial Officer Erin Drabek Director of Investor Relations
T 972.942.6500 InvestorResources@arcosa.com David Gold
ADVISIRY Partners T 212.661.2220 David.Gold@advisiry.com
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