AZZ Inc. (NYSE: AZZ) has announced the successful repricing of its existing $890 million term loan B, which is set to mature on May 13, 2029. The repricing has resulted in a reduction of the interest rate margin by an additional 75 basis points to SOFR + 250 basis points, with no changes to leverage, covenants, or maturity date.
As a result of this repricing, assuming the same level of indebtedness of $890 million on its term loan B, AZZ expects to achieve annual interest savings of approximately $7 million per year. This marks a significant achievement for the company, as it reflects a disciplined approach to reducing debt and improving its leverage profile.
AZZ's Chief Financial Officer, Jason Crawford, commented on the successful repricing, noting the strong market demand for the term loan B. Since the issuance of the term loan B in May 2022, the company has managed to reduce the interest rate margin by a total of 185 basis points.
This successful repricing comes on the heels of the company's acquisition of Precoat Metals in May 2022. With robust business performance and strong cash flow generation, AZZ has been able to strengthen and simplify its balance sheet, demonstrating a commitment to improving its financial position.
AZZ Inc. is recognized as the leading independent provider of hot-dip galvanizing and coil coating solutions, serving a diverse range of end-markets. The company's business segments collectively provide sustainable metal coating solutions that enhance the longevity and appearance of essential buildings, products, and infrastructure.
As a result of these announcements, the company's shares have moved 0.9% on the market, and are now trading at a price of $82.01. If you want to know more, read the company's complete 8-K report here.
