IES Holdings, Inc. (NASDAQ: IESC) has announced an amendment and restatement of its existing credit and security agreement, resulting in a significant increase in the commitment amount of the revolving credit facility. The commitment amount has been raised to $300 million from $150 million, and the maturity date has been extended to January 21, 2030. This extension comes with an expansion of the size of the lending group.
The amended credit agreement has transitioned the company to a cash flow-based facility, which enables increased borrowing capacity compared to the previous asset-based structure. Under the previous structure, availability was limited by eligible collateral.
Wells Fargo Bank, National Association acted as the administrative agent, while Wells Fargo Securities, LLC and Fifth Third Bank, National Association acted as the lead arrangers and joint bookrunners.
Jeff Gendell, Chairman and CEO of IES, expressed appreciation for the confidence shown in the company by Wells Fargo, Fifth Third, and the new banking partners through the larger and more flexible credit facility. He highlighted that the facility strengthens their ability to execute their capital allocation strategy, providing the liquidity and flexibility necessary to pursue strategic priorities, including organic growth, acquisitions, share repurchases, and other investment opportunities.
IES Holdings, Inc. designs and installs integrated electrical and technology systems and provides infrastructure products and services across various end markets, including data centers, residential housing, and commercial and industrial facilities. The company's workforce of more than 9,000 employees serves clients in the United States. Today the company's shares have moved 8.4% to a price of $299.4. For more information, read the company's full 8-K submission here.
