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THE WOODLANDS, Texas - Sterling Infrastructure, Inc. (NasdaqGS: STRL), a $6.26 billion market cap infrastructure company, has successfully renegotiated its 2019 credit agreement, resulting in an extension of the facility’s maturity to June 2028, an expansion of the facility’s size, and enhanced financial flexibility. The amendment includes a $300 million term loan and a $150 million revolving credit facility.
As of Sunday, the company had $300 million in outstanding borrowings under the term loan, with the revolving credit facility remaining undrawn. Sterling’s cash position was reported at $785 million, reflecting the company’s strong balance sheet. According to InvestingPro data, Sterling holds more cash than debt on its balance sheet, with a healthy current ratio of 1.32x. BMO Capital Markets Corp. and BMO Bank N.A. spearheaded the amendment process, with Bank of America, N.A. and BofA Securities, Inc. also playing key roles.
The revised terms allow Sterling to potentially increase its credit facilities up to the greater of $400 million or 100% of the company’s EBITDA, in addition to an unlimited amount subject to a 2.0X Total Net Leverage ratio. Interest rates on loans will be based on a base rate or SOFR, with a reduced applicable margin. The company will begin repaying the term loan in quarterly installments starting September 30, 2025, at a rate of 1.25% of the initial principal, which is a decrease from the previous payment requirement.
Sterling’s CEO, Joe Cutillo, expressed gratitude for the lender support and confidence in the company’s outlook. He emphasized that the updated credit facility will support Sterling’s growth strategies, including mergers and acquisitions. The company’s strong financial position is reflected in its impressive performance, with InvestingPro reporting an 82.7% return over the past year and the stock trading near its 52-week high of $207.01.
Sterling operates in the United States, focusing on E-Infrastructure, Transportation, and Building Solutions, with services ranging from site development for manufacturing and data centers to infrastructure projects and residential and commercial construction. The company prides itself on sustainable practices and community engagement.
This financial move is based on information from a press release statement issued by Sterling Infrastructure, Inc.
In other recent news, Sterling Construction reported impressive financial results for Q1 2025, surpassing analyst expectations. The company achieved an adjusted earnings per share (EPS) of $1.63, significantly beating the forecasted $1.00, and reported revenue of $430.9 million, which was above the anticipated $411.13 million. This performance was driven by strong growth in Sterling Construction’s e-infrastructure solutions and mission-critical project management. The company also announced a substantial backlog of $2.1 billion, indicating robust future demand.
DA Davidson maintained a Buy rating for Sterling Construction and raised its price target to $205, citing strong earnings growth and successful mergers and acquisitions. The firm highlighted the company’s E-Infrastructure segment, particularly its data center projects, as a key area of growth. Sterling Construction’s strategic acquisitions, such as Drake Concrete, are expected to enhance earnings power in the Building Solutions segment when demand rebounds.
Additionally, DA Davidson noted that Sterling Construction’s trailing twelve months return on equity was 37%, with a free cash flow conversion of 172% and sector-leading EBITDA margins. The firm has increased its estimates for 2025 and 2026, reflecting confidence in Sterling Construction’s continued growth. The company’s focus on expanding its e-infrastructure and data center market presence is seen as a positive long-term strategy.
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