AZZ Inc. announced the successful repricing of its $890 million Term Loan B, which is set to mature on May 13, 2029. This repricing reduced the interest rate margin by an additional 75 basis points, bringing it to SOFR + 250 basis points. There were no other changes to the loan's terms, covenants, or maturity date.
The company anticipates that this repricing will result in annual interest savings of approximately $7 million, assuming the same level of indebtedness. This move reflects AZZ's disciplined approach to debt reduction and balance sheet strengthening since the acquisition of Precoat Metals in May 2022.
Chief Financial Officer Jason Crawford noted that this marks an aggregate reduction of 185 basis points in the interest rate margin since the Term Loan B's issuance. The repricing enhances AZZ's financial flexibility and contributes to an improved leverage profile.
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