Sterling Infrastructure, Inc. has entered into a Second Amended and Restated Credit Agreement, increasing its total revolving credit facility by $1.05 billion to $1.5 billion and extending the maturity date to July 2, 2031. The proceeds will be used for refinancing existing debt, capital expenditures, acquisitions, and general corporate purposes.
Key Details
- Facility Size: The amended agreement provides for a $1.5 billion revolving credit facility, an increase of $1.05 billion from the previous agreement.
- Maturity & Terms: The facility matures on July 2, 2031. It includes a $600 million sublimit for letters of credit and a $50 million sublimit for swing line loans.
- Incremental Option: The company has an option to establish an incremental facility for an amount equal to the greater of $500 million or 100% of the company's EBITDA, plus an unlimited amount subject to a pro forma Total Net Leverage Ratio of 2.00 to 1.00 or less.
- Financial Covenants: The agreement requires maintaining a Total Net Leverage Ratio no greater than 3.50 to 1.00 (with an option to increase to 4.00 to 1.00 for four quarters following a major acquisition) and an Interest Coverage Ratio of at least 3.00 to 1.00.