Arcosa, Inc. has announced the pricing of $600 million of 6.875% senior notes due 2032. The offering is expected to close on August 26, 2024. The net proceeds from the offering, along with expected borrowings under the previously announced term loan b facility due 2031, will be used to fund the $1.2 billion purchase price of the acquisition of the construction materials business of Stavola Holding Corporation and its affiliated entities, with any remaining net proceeds being used to repay amounts outstanding under Arcosa’s revolving credit facility.
The notes will be senior unsecured obligations of Arcosa and will initially be guaranteed on a senior unsecured basis by each of Arcosa’s domestic subsidiaries that is a guarantor under its senior credit facility. If the transaction is not consummated within a specified timeframe, the notes will be subject to a special mandatory redemption.
The notes and related guarantees are being offered and sold to qualified institutional buyers in reliance on rule 144a under the Securities Act of 1933, as well as to certain non-U.S. persons in compliance with regulation s under the Securities Act.
The press release emphasizes that the notes and related guarantees have not been registered for sale under the Securities Act or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
Arcosa, Inc. is headquartered in Dallas, Texas, and is a provider of infrastructure-related products and solutions with leading positions in construction, engineered structures, and transportation markets. The company reports its financial results in three principal business segments: construction products, engineered structures, and transportation products. As a result of these announcements, the company's shares have moved 2.5% on the market, and are now trading at a price of $85.54. For more information, read the company's full 8-K submission here.
