AZZ, an independent provider of hot-dip galvanizing and coil coating solutions in North America, repriced its existing $890 million term loan B facility, which matures May 13, 2029. According to a related 8-K filing, Citibank served as administrative agent and collateral agent for the loan.
The repricing reduced the interest rate margin on the loan 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.
“We are pleased with the strong market demand for our term loan B,” Jason Crawford, chief financial officer of AZZ, said. “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.”
