Orion Group Holdings, Inc. has just closed a $120 million refinancing transaction with UMB Bank, positioning the company for future growth. The new credit facility, which matures in December 2030, includes a $60 million revolving line of credit, a $20 million equipment term loan facility, and a $40 million acquisition term loan facility, with an additional $25 million uncommitted accordion to fund future growth.
The new facility offers increased financial flexibility, expanded liquidity, and greater borrowing capacity at a lower overall cost of capital compared to the previous credit agreement. Borrowings under the new facility bear interest at the company’s option at the secured overnight financing rate (SOFR) plus 2.5% to 3.0%, representing a reduction of approximately 225 basis points compared to the prior credit agreement.
This refinancing transaction will allow Orion Group Holdings to repay outstanding borrowings of $23 million under the previous facility and allocate the remaining proceeds for general corporate purposes, further solidifying the company’s position for strategic growth.
As a leading specialty construction company serving the infrastructure, industrial, and building sectors, Orion Group Holdings provides services in the continental United States, Alaska, Hawaii, Canada, and the Caribbean Basin through its marine and concrete segments. The company's marine segment offers construction and dredging services, while its concrete segment provides turnkey concrete construction services for various business areas.
This refinancing marks a significant step for Orion Group Holdings as it positions itself for future expansion and executes on its strategic growth priorities. Today the company's shares have moved -0.48% to a price of $10.40. For more information, read the company's full 8-K submission here.
