Concrete Pumping Holdings, Inc. has recently announced the closing of its senior secured second lien notes offering, signaling a significant financial move for the company. The $425.0 million in aggregate principal amount of senior secured second lien notes due 2032 were issued at par and bear interest at a fixed rate of 7.500% per annum.
These proceeds were utilized to pay the redemption price for all of the company’s outstanding 6.000% senior secured second lien notes due 2026 and to pay related fees and expenses. Additionally, the remainder of the net proceeds of the notes, together with cash on hand, will be used to pay a special one-time dividend of $1.00 per share of the common stock of the company, amounting to approximately $53 million in the aggregate, to be paid on or about February 3, 2025.
This move is seen as a strategic step to strengthen the company's balance sheet and represents a significant milestone in its evolution. Bruce Young, CEO of CPH, emphasized that the refinancing underscores the company’s consistent operating performance and healthy free cash flow generation. He highlighted the company's commitment to driving superior shareholder value and its confidence in its strong and consistent free cash flow generation, while maintaining prudent leverage and ample liquidity to invest in long-term growth strategy.
Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets, primarily operating under established, national brands * Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. As of October 31, 2024, the company provided concrete pumping services from a footprint of approximately 90 locations across 22 states in the U.S., 35 locations in the U.K., and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K. Following these announcements, the company's shares moved -0.5%, and are now trading at a price of $8.42. Check out the company's full 8-K submission here.
