Sterling Infrastructure Extends Credit to July 2031 and Expands to $1.5 Billion
STRL•Sterling Infrastructure has extended its credit facility maturity to July 2031 and expanded revolving borrowings to $1.5 billion, boosting capacity by $1.05 billion with new and existing lenders. The amendment drops the 10-basis-point SOFR adjustment, lowers pricing margins based on leverage and eases covenant restrictions.
1. Amendment Details
Sterling Infrastructure entered into a second amendment and restatement of its credit agreement, replacing existing term loan and revolving facilities. The new agreement extends the facility maturity to July 2031 and was led by BMO Capital Markets and BMO Bank with participation from national and regional lenders.
2. Facility Expansion
The credit line now allows up to $1.5 billion in revolving borrowings, representing a $1.05 billion increase over prior capacity. An incremental facility base has also risen from $400 million to $500 million, enhancing overall liquidity.
3. Interest and Covenant Changes
The amendment eliminates the 10-basis-point SOFR adjustment and reduces pricing margins tied to Total Net Leverage Ratio. Covenants have been relaxed, granting Sterling greater operational flexibility.
4. Strategic Outlook
Proceeds will refinance existing debt, fund capital expenditures, support permitted acquisitions and general corporate needs. Management says the enhanced facility strengthens financial flexibility to pursue organic growth, strategic M&A and long-term value creation.
