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IRVING, Texas - Commercial Metals Company (NYSE: CMC), a global manufacturer in the construction sector with a market capitalization of $5.02 billion, announced today its intention to initiate a $150 million tax-exempt bond financing through the West Virginia Economic Development Authority (WVEDA). According to InvestingPro data, the company maintains a strong financial position with liquid assets exceeding short-term obligations and a healthy current ratio of 2.82. The funds from the Solid Waste Disposal Facility Revenue Bonds are earmarked for the acquisition and development of a new facility in Berkeley County, West Virginia.
The proposed financing, which is contingent on market conditions and other factors, will support the construction and equipment costs of the solid waste disposal facilities. CMC’s total investment in the project is projected to be between $550 million and $600 million, after accounting for an expected $75 million in government assistance from WVEDA and an $80 million net tax credit under the Inflation Reduction Act. The company’s moderate debt level, with a total debt-to-capital ratio of 0.19, suggests capacity for this additional financing. Based on InvestingPro’s Fair Value analysis, CMC currently appears slightly undervalued, with 10+ additional ProTips available for subscribers.
The bonds, set to be special limited obligations of WVEDA, will not be registered under the Securities Act of 1933 or any state securities laws and will be offered under an exemption. CMC’s obligations under the loan agreement with WVEDA will be treated as senior unsecured obligations.
This financing move is part of CMC’s strategy to bolster its manufacturing network, primarily based in the United States and Central Europe, to meet the reinforcement needs of the global construction industry. The company emphasizes its commitment to innovation and sustainability in the construction sector. With last twelve months EBITDA of $732.77 million and a 55-year track record of consistent dividend payments, CMC demonstrates strong operational performance. For detailed analysis and comprehensive insights, access the full Pro Research Report available on InvestingPro.
The press release includes forward-looking statements about the bond financing and the anticipated costs and incentives related to the micro mill project in Berkeley County. However, these statements are based on current expectations and are subject to various risks and uncertainties that could cause actual results to differ materially.
Investors are cautioned that this press release does not constitute an offer to sell the securities and that any sale of the bonds will be subject to regulatory restrictions. The information contained in this article is based on a press release statement from Commercial Metals Company.
In other recent news, Commercial Metals Company reported its second-quarter financial results for fiscal year 2025, showing a slight miss on earnings per share (EPS) compared to projections. The company posted an EPS of $0.26, falling short of the expected $0.30, while revenue aligned with forecasts at $1.75 billion. Despite the earnings miss, Commercial Metals remains optimistic about future quarters, citing strong demand in key markets like construction and infrastructure. UBS maintained its Neutral rating on Commercial Metals, with a $49 price target, noting that recent government actions regarding import tariffs could create a more favorable environment for the steel industry. Analyst Curt Woodworth from UBS highlighted the potential for earnings growth due to unexpected policy changes, including a 25% tariff on all imports. The company is also expanding production capabilities and launching new operational initiatives, such as the Arizona O2 Micromill, to enhance capacity and efficiency. Commercial Metals anticipates improved financial performance in the third quarter, driven by increased margins and strong demand across its product lines. The firm has revised its full-year capital spending to $550-600 million, reflecting its commitment to growth and operational excellence.
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