U.S. Concrete Enters Into New $80 Million ABL With BofA
U.S. Concrete, Inc. entered into a new $80 million asset-based credit agreement on August 31, 2012 with Bank of America as agent and sole lead arranger. The new credit agreement will expire on July 1, 2015 and includes an uncommitted accordion feature that may allow for an increase in the total commitments under the facility to as much as $125 million, subject to certain conditions and the calculation of a borrowing base.
Proceeds from advances under the new credit agreement will be used to finance working capital, permitted acquisitions and for other lawful corporate purposes.
U.S. Concrete terminated its existing $75 million asset-based credit agreement dated as of August 31, 2010, with JPMorgan Chase Bank as administrative agent, sole bookrunner and lead arranger, and Wells Fargo Capital Finance as documentation agent and lead arranger.
In connection with the termination of the 2010 credit facility, the company repaid approximately $10 million in outstanding indebtedness under the 2010 credit facility. The lending commitments under the 2010 credit facility were scheduled to expire on August 31, 2014.
U.S. Concrete president and CEO, William J. Sandbrook, said, “We are excited to have refinanced our credit facility with improved terms to expand our borrowing capacity, extend the term of the facility, lower our cost of revolver funding and allow for greater flexibility to pursue our strategic plan.”
U.S. Concrete services the construction industry in several major markets in the United States through its two business segments: ready-mixed concrete and concrete-related products, and precast concrete products.
Previously on abfjournal.com: