Arcosa, Inc. Announces Closing of $600 Million of 6.875% Senior Notes Due 2032
August 26 2024 - 3:15PM
Business Wire
Arcosa, Inc. (NYSE: ACA) (“Arcosa”) today announced it has
closed the previously announced private offering of $600.0 million
aggregate principal amount of 6.875% 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 its 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 are senior unsecured obligations of Arcosa and are
guaranteed on a senior unsecured basis by each of Arcosa’s domestic
subsidiaries that is a guarantor under its senior credit facility.
Additionally, the Notes are 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 were 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
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.
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, the intended use of offering proceeds, 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/20240826104841/en/
MEDIA CONTACT: media@arcosa.com
INVESTOR CONTACTS 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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