AZZ Inc., a provider of hot-dip galvanizing and coil coating solutions, repriced its existing $1.03 billion term loan B due May 13, 2029. According to an 8K filed with the SEC, Citibank is the administrative and collateral agent for the facility.
The repricing reduced the interest rate margin on the term loan by 50 bps to SOFR plus 375 bps and removed the credit spread adjustment (CSA) of 10 bps, resulting in annual interest savings of more than $5 million per year.
“We are pleased to announce the successful completion of our term loan B refinancing,” Philip Schlom, CFO of AZZ Inc., said. “We achieved a 50-basis-point reduction in our term loan B borrowing rate and removed the CSA, an additional savings of 10 basis points, with no change to our leverage, covenants, or maturity date. Since acquiring Precoat Metals in May 2022, we have reduced both the principal and interest rate on our term loan B as we continue to take a disciplined approach to lowering our net debt to EBITDA leverage ratio to three times or lower in calendar year 2024.”
