Orion Group, a specialty construction company, entered into a new, five-year $120 million senior credit facility with UMB Bank.
“We are pleased to announce this refinancing, a key milestone in the company’s growth strategy. The new credit facility increases Orion’s financial flexibility with expanded liquidity and greater borrowing capacity at a lower overall cost of capital. We look forward to our partnership with UMB as we position the company to execute on our strategic growth priorities,” Travis Boone, president and CEO of Orion, said.
“UMB is honored to provide the credit facility to Orion that will help fuel its plans for future growth. Thriving businesses are essential to our communities, and we are thrilled to deliver the resources and access to capital to help them achieve their goals. I can’t wait to see where the Orion team goes in this next phase of their business,” Michael Garner, regional president for Texas and Oklahoma at UMB Bank, said.
The $120 million UMB credit facility matures in December 2030 and is comprised of a $60 million revolving line of credit, a $20 million equipment term loan facility and a $40 million acquisition term loan facility. The credit facility also includes an additional $25 million uncommitted accordion to fund future growth. This facility refinances and replaces the company’s previous $88 million credit agreement, which was scheduled to mature in May 2028. Borrowings under the new facility bear interest at the company’s option at the Secured Overnight Financing Rate (SOFR) plus 2.5% to 3.0%, as determined based on the company’s consolidated leverage, representing a reduction of approximately 225 basis points compared to the prior credit agreement. Proceeds will be used to repay outstanding borrowings of $23 million under the company’s prior facility and for general corporate purposes.
