Commercial Metals Company (CMC) has announced its plans to raise $150 million through a proposed tax-exempt bond financing. The West Virginia Economic Development Authority (WVEDA) has authorized the issuance and sale of solid waste disposal facility revenue bonds, which will be utilized to partially fund the construction of solid waste disposal facilities in Berkeley County, West Virginia. CMC's total investment in the facility is anticipated to be between $550.0 million and $600.0 million, net of $75.0 million of government assistance from WVEDA. Additionally, the construction of the facility is expected to qualify for a net tax credit under the Inflation Reduction Act of approximately $80.0 million.
The bonds, if issued, will be special limited obligations of WVEDA, and WVEDA will assign substantially all of its rights under the loan agreement to the trustee for the bondholders as security for the bonds. CMC's obligations under the loan agreement will be senior unsecured obligations.
It is important to note that the bonds will not be registered under the Securities Act of 1933 and will be issued pursuant to an exemption therefrom. The press release emphasizes that the offering of these securities will not be made within the United States or to or for the account or benefit of any U.S. person, absent registration or an applicable exemption from registration requirements.
This press release also provides insight into CMC's financial standing and its commitment to innovation, as it describes the company as an "innovative solutions provider helping build a stronger, safer, and more sustainable world." The company's extensive manufacturing network, primarily located in the United States and Central Europe, offers products and technologies to meet the critical reinforcement needs of the global construction sector.
Today the company's shares have moved -1.3% to a price of $43.82. Check out the company's full 8-K submission here.
