New Enterprise Stone & Lime has entered into a new $450 million secured term loan facility with a group of private lenders. The new term loan will be used to repay in full its existing 13% secured notes and $70 million term loan.

In connection with the incurrence of the new term loan and the repayment of related existing debt, the company has entered into an amendment of the terms of its existing $105 million asset-based revolving credit facility with a lender group led by Cortland Capital Market Services serving as administrative agent, according to a related 8-K filing.

The new term loan has a stated maturity of five years, providing stability to the company’s capital structure. The new term loan is priced at LIBOR+8.0% (with a 1.0% LIBOR floor). This pricing will result in a significant reduction in annual interest expense.

Additionally, the ABL amendment decreases the interest rate margin on the revolving loans under the ABL facility by 1.25%. The ABL amendment also removes certain restrictive financial covenants, including a $20 million availability block, and reduces certain operational and financial reporting requirements. While the total ABL facility remains at $105 million, the ABL amendment allows for the issuance of an additional $15 million of letters of credit. Both the new term loan and the ABL amendment provide increased flexibility in refinancing the company’s remaining debt.

New Enterprise, PA-based New Enterprise Stone & Lime is a vertically-integrated construction materials supplier and heavy/highway construction contractor.