Sterling Infrastructure requested and received an amendment to its 2019 credit agreement that extends the maturity of the credit facility to June 2028, expands the size of the facility and improves flexibility.
The amended credit facility consists of a $300 million term loan and a $150 million revolving credit facility. As of June 5, 2025, $300 million in borrowings were outstanding under the term loan, the revolving credit facility was undrawn, and cash and cash equivalents totaled $785 million.
The credit agreement amendment was led by BMO Capital Markets as joint lead arranger and joint book runner, and BMO Bank as administrative agent. Bank of America serves as syndication agent, and BofA Securities as joint lead arranger and joint book runner.
Additional features of the amended facility include:
- The ability to increase the credit facilities by an amount not to exceed the greater of (a) $400 million or (b) 100% of the company’s EBITDA, plus an unlimited amount up to 2.0X total net leverage.
- Loans under the credit facilities bear interest at either a base rate or SOFR plus an applicable margin based on the total net leverage ratio. The applicable margin rates under the amended facility were reduced by 25 basis points.
- Term loans will be repaid quarterly beginning September 30, 2025, in accordance with the amortization schedule, with payments equal to 1.25% of the initial principal, or $3.75 million per quarter, and the remainder due at maturity. A reduction from the previous required quarterly payments of $6.56 million.
- Covenants under the amended facility are less restrictive than those under the previous agreement.
“We are fortunate to have great relationships with our key lenders and appreciate their support and confidence in our outlook,” Joe Cutillo, CEO of Sterling, said. “The extension and expansion of our credit facility, combined with the enhanced flexibility of the facility, position us well as we work to grow the business both organically and through M&A opportunities.”
