S&P 500 slips, but losses kept in check as Nvidia climbs ahead of results
Arcosa , Inc. (NYSE:ACA), a $4.2 billion infrastructure products company currently trading slightly above its InvestingPro Fair Value, has successfully refinanced its existing term loan with a new $698.25 million facility at more favorable interest rates, according to an SEC filing released Wednesday.
The Dallas-based infrastructure products company, which generated $2.6 billion in revenue over the last twelve months with an EBITDA of $439.9 million, entered into Amendment No. 2 to its Second Amended and Restated Credit Agreement on June 17, establishing a new "2025 Refinancing Term Loan" with JPMorgan Chase (NYSE:JPM) Bank, N.A. serving as administrative agent.
The new term loan carries a variable interest rate based on either the Secured Overnight Financing Rate (SOFR) plus 2.00% per annum or an alternate base rate plus 1.00% per annum. These margins represent a 0.25% reduction compared to the interest rates on the original term loan that was fully prepaid with the proceeds from this refinancing.
The agreement includes a 1.0% premium on any prepayments made within six months if connected to a repricing transaction. Beyond this period, Arcosa may prepay the loan in full or partially without penalty, except for customary SOFR-related breakage costs.
All other terms of the refinancing loan remain consistent with the original term loan that was replaced. The company used the net proceeds from the new loan, together with cash on hand, to prepay its outstanding term loan under the existing credit agreement. According to InvestingPro data, Arcosa maintains strong liquidity with a current ratio of 1.98, indicating robust ability to meet its short-term obligations. Get access to 7 more exclusive ProTips and comprehensive financial analysis through InvestingPro’s detailed research reports.
In other recent news, Arcosa Inc. reported strong financial results for the first quarter of 2025, exceeding earnings expectations with an EPS of $0.49, compared to the forecasted $0.26. Revenue also surpassed projections, reaching $632 million against an anticipated $622.78 million, marking a 12% year-over-year increase. The company experienced a 26% rise in consolidated adjusted EBITDA, with a margin expansion of 190 basis points, demonstrating improved operational efficiency. The integration of the $1.2 billion Stabola acquisition contributed to the growth, particularly in the Utility Structures segment, which saw significant volume increases. Oppenheimer analysts have reiterated an outperform rating for Arcosa, maintaining a $110 price target. They highlighted potential benefits from recent legislative developments for Arcosa’s Barge and Construction Products businesses. The analysts also noted that the expiration of 45X credits at the end of 2027 could present challenges for Arcosa’s non-core Wind business. Despite these challenges, Arcosa’s Construction Products division continues to perform well, with successful price increases implemented earlier this year.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.