Loan & DebtJul 8, 2026, 09:11 AM
Sterling Infrastructure Expands Credit Facility to $1.5B
AI Summary
Sterling Infrastructure, Inc. entered into a Second Amended and Restated Credit Agreement, extending its maturity to July 2031 and expanding its credit facility. The new agreement increases borrowing capacity by $1.05 billion, providing up to $1.5 billion in revolving borrowings for refinancing, capital expenditures, acquisitions, and general corporate purposes. The facility features enhanced pricing, including the elimination of the SOFR 10 basis point credit spread adjustment, and offers greater financial flexibility with less restrictive covenants.
Key Highlights
- Entered into a Second Amended and Restated Credit Agreement maturing on July 2, 2031.
- Increased borrowing capacity by $1.05 billion, bringing total revolving borrowings to $1.5 billion.
- Includes a $600 million sublimit for letters of credit and a $50 million sublimit for swing line loans.
- Enhanced pricing with elimination of SOFR 10 basis point credit spread adjustment and reduced overall pricing margins.
- Increased base amount of the incremental facility from $400 million to $500 million.
- Financial covenants include a Total Net Leverage Ratio not greater than 3.50:1.00 and an Interest Coverage Ratio of not less than 3.00:1.00.
- Provides additional flexibility with increased debt, lien, investment, and restricted payment baskets.
- As of July 2, 2026, $90 million was outstanding under the Revolving Loans.
Price Impact
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