FORT
WORTH, Texas, Aug. 17,
2023 /PRNewswire/ -- AZZ Inc. (NYSE: AZZ), the
leading independent provider of hot-dip galvanizing and coil
coating solutions in North
America, today announced the successful repricing of AZZ's
existing $1.03 billion Term Loan B
due May 13, 2029. The repricing
reduces the interest rate margin on the Term Loan B by 50 basis
points to SOFR + 375 basis points and successfully removed the
Credit Spread Adjustment (CSA) of 10 basis points resulting in
annual interest savings of over $5
million per year.
Philip Schlom, Chief Financial
Officer commented, "We are pleased to announce the successful
completion of our Term Loan B refinancing. We achieved a 50-basis
point reduction in our Term Loan B borrowing rate and removed the
CSA, an additional savings of 10 basis points, with no change to
our leverage, covenants, or maturity date. Since
acquiring Precoat Metals in May
2022, we have reduced both the principal and interest rate
on our Term Loan B as we continue to take a disciplined approach to
lowering our net debt to EBITDA leverage ratio to 3.0 times or
lower in calendar year 2024."
About AZZ Inc.
AZZ Inc. is the leading independent
provider of hot-dip galvanizing and coil coating solutions to a
broad range of end-markets. Collectively, our business segments
provide sustainable, unmatched metal coating solutions that enhance
the longevity and appearance of buildings, products and
infrastructure that are essential to everyday life.
Safe Harbor Statement
Certain statements
herein about our expectations of future events or results
constitute forward-looking statements for purposes of the safe
harbor provisions of The Private Securities Litigation Reform Act
of 1995. You can identify forward-looking statements by terminology
such as "may," "could," "should," "expects," "plans," "will,"
"might," "would," "projects," "currently," "intends," "outlook,"
"forecasts," "targets," "anticipates," "believes," "estimates,"
"predicts," "potential," "continue," or the negative of these terms
or other comparable terminology. Such forward-looking statements
are based on currently available competitive, financial, and
economic data and management's views and assumptions regarding
future events. Such forward-looking statements are inherently
uncertain, and investors must recognize that actual results may
differ from those expressed or implied in the forward-looking
statements. Forward-looking statements speak only as of the date
they are made and are subject to risks that could cause them to
differ materially from actual results. Certain factors could affect
the outcome of the matters described herein. This press release may
contain forward-looking statements that involve risks and
uncertainties including, but not limited to, changes in customer
demand for our products and services, including demand by the
construction markets, industrial markets, and the metal coatings
markets. We could also experience additional increases in labor
costs, components and raw materials, including zinc and natural
gas, which are used in our hot-dip galvanizing process;
supply-chain vendor delays; customer requested delays of our
products or services; delays in additional acquisition
opportunities; currency exchange rates; an increase in our debt
leverage and/or interest rates on our debt, of which a significant
portion is tied to variable interest rates; availability of
experienced management and employees to implement AZZ's growth
strategy; a downturn in market conditions in any industry relating
to the products we inventory or sell or the services that we
provide; economic volatility, including a prolonged economic
downturn or macroeconomic conditions such as inflation or changes
in the political stability in the United
States and other foreign markets in which we operate; acts
of war or terrorism inside the United
States or abroad; and other changes in economic and
financial conditions. AZZ has provided additional information
regarding risks associated with the business, in Part I, Item 1A.
Risk Factors, in AZZ's Annual Report on Form 10-K for the fiscal
year ended February 28, 2023, and other filings with the
Securities and Exchange Commission ("SEC"), available for viewing
on AZZ's website at www.azz.com and on the SEC's website at
www.sec.gov. You are urged to consider these factors carefully in
evaluating the forward-looking statements herein and are cautioned
not to place undue reliance on such forward-looking statements,
which are qualified in their entirety by this cautionary statement.
These statements are based on information as of the date hereof
and AZZ assumes no obligation to update any forward-looking
statements, whether as a result of new information, future events,
or otherwise.
Investor Relations and Company Contact:
David Nark,
Senior Vice President of Marketing, Communications and Investor
Relations
AZZ Inc.
(817) 810-0095
www.azz.com
Investor Contact:
Sandy
Martin / Phillip Kupper
Three Part Advisors
(214) 616-2207
www.threepa.com
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SOURCE AZZ Inc.