AECOM launches $1 billion senior notes offering to refinance debt

Published 15/07/2025, 14:26
AECOM launches $1 billion senior notes offering to refinance debt

DALLAS - Infrastructure firm AECOM (NYSE:ACM), a $15.12 billion market cap company with a GOOD financial health score according to InvestingPro, announced Tuesday it has commenced a private offering of $1 billion in senior unsecured notes due 2033, according to a company press release.

The Fortune 500 company plans to use the proceeds, along with cash on hand, to purchase its outstanding 5.125% Senior Notes due 2027 through a concurrent cash tender offer. Any 2027 notes not acquired through the tender offer will be redeemed, the company stated. InvestingPro data shows AECOM operates with a moderate debt level, maintaining a healthy debt-to-capital ratio of 0.17.

The new senior notes will be guaranteed by certain AECOM subsidiaries and are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons offshore under Regulation S.

The notes will not be registered under the Securities Act or other securities laws, meaning they cannot be offered or sold in the United States without registration or an applicable exemption.

AECOM, which reported revenue of $16.1 billion in fiscal year 2024, describes itself as a global infrastructure leader providing professional services in water, environment, energy, transportation and buildings sectors. The company has demonstrated strong performance with a 32.55% return over the past year, and its current market price closely aligns with InvestingPro’s Fair Value assessment. Subscribers can access 12 additional exclusive ProTips and comprehensive financial analysis for AECOM.

The offering is subject to market conditions and other factors, and no assurance can be given that the offering will be completed on the terms described.

In other recent news, AECOM announced it has been appointed as the technical advisor and lead consultant for VicGrid, a Victorian government agency in Australia, to support the state’s transition to renewable energy. The firm will collaborate with GHD and specialist contractors to provide technical advice on the development of energy infrastructure. AECOM has also secured an $81.3 million contract with the U.S. Army Corps of Engineers to perform environmental remediation services at Vandenberg Space Force Base in California. This decade-long contract will involve the use of advanced digital tools to enhance remediation efficiency across 60 sites within the base.

Additionally, AECOM is competing for a $3 billion energy and water conservation contract alongside several other U.S. companies. The contract, overseen by the U.S. Army Corps of Engineers’ Engineering and Support Center, aims to reduce energy and water consumption. In the Middle East, AECOM is partnering with the Saudi Ministry of Sport to oversee the renovation of King Fahd Sport City in Riyadh, preparing it for major international events like the AFC Asian Cup and FIFA World Cup. Meanwhile, Truist Securities has maintained its Buy rating on AECOM stock with a price target of $121.00, highlighting the company’s earnings resilience and strong position in the infrastructure services sector.

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