Daily News: July 2, 2013

BofA Agents New $650MM Facility for Aegion

Aegion Corporation announced it completed the acquisition of Brinderson. The transaction purchase price was $150 million.

Aegion also announced it has entered into a new $650 million senior secured credit facility with a syndicate of banks. Bank of America served as the administrative agent. Merrill Lynch, J.P. Morgan Securities and U.S. Bank acted as joint lead arrangers and joint book managers in the syndication of the credit facility.

The credit facility consists of a $300 million five-year revolving line of credit and a $350 million five-year term loan facility. The company drew $385.5 million from the new facility on July 1, 2013 for the following purposes: (1) to pay the $150 million cash purchase price for the company’s acquisition of Brinderson; (2) to retire $232.3 million in indebtedness outstanding under the company’s prior credit facility; and (3) to fund expenses associated with the new credit facility and the Brinderson acquisition. This new facility replaces the company’s $500 million credit facility.

In addition to Bank of America, JPMorgan Chase and U.S. Bank, the participating banks in the syndicate are Fifth Third Bank, Regions Bank, PNC Bank, BBVA Compass Bank, HSBC Bank USA, KeyBank, Bank of the West, BB&T, Wells Fargo, BMO Harris, Comerica Bank, National Bank of Kuwait SAK and Stifel Bank and Trust.

The credit facility includes a provision permitting the Company, by notice to Bank of America, as administrative agent, to increase either the revolving credit line or the term loan with additional commitments of up to $250 million from either the existing lending banks or additional financial institutions.

David A. Martin, Aegion’s senior vice president and chief financial officer, said “We are pleased by the enthusiasm shown by the participating banks in bringing this credit facility to fruition and are gratified by the confidence these banks have shown in our company, acquisition strategy and operating plan going forward. This new credit facility will allow us to optimize the company’s balance sheet, achieve an appropriate level of return for our stockholders, and provide the necessary capacity for our anticipated future growth.”

St. Louis, MS-based Aegion provides infrastructure protection, providing proprietary technologies and services to protect against the corrosion of industrial pipelines and for the rehabilitation and strengthening of water, wastewater, energy and mining piping systems and buildings, bridges, tunnels and waterfront structures.