Centuri Holdings amends credit agreement, secures $800 million term loan

Centuri Holdings , Inc. (NYSE:CTRI), a utility infrastructure services company with a market capitalization of $1.86 billion, announced Monday it has entered into a sixth amendment to its existing credit agreement, according to a statement based on a recent SEC filing. According to InvestingPro data, the company maintains strong liquidity with a current ratio of 1.57, indicating healthy ability to meet short-term obligations.

The amendment, dated July 9, 2025, involves Centuri Holdings, Centuri Group, Inc., Centuri Canada Division Inc., a group of lenders, and Wells Fargo (NYSE:WFC) Bank as administrative agent. Under the revised agreement, Centuri Holdings joins as a borrower and several terms of the credit facility have been updated. The company’s total debt stands at $994 million, with last twelve months EBITDA of $233 million.

Key changes include the refinancing and full replacement of the previous term loan facility with a new $800 million term loan maturing on July 9, 2032. Of this amount, $93.6 million consists of new term loans used to refinance existing debt, while $706.4 million refinances existing term loans. The senior secured revolving credit facility has been increased from $400 million to $450 million, with its maturity extended from August 27, 2026, to July 9, 2030.

The amendment also updates the change in control provision, allowing Southwest Gas (NYSE:SWX) Holdings, Inc. to reduce its ownership in Centuri Holdings below 51% without triggering a default under the credit agreement.

Interest rate margins have been reduced by 0.25%, resulting in a margin of 2.25% for SOFR loans and 1.25% for base rate loans. Certain financial and operational covenants have also been modified.

The company’s quarterly financial covenants have been amended so that the consolidated total net leverage ratio must not exceed 4.50 to 1.00 for any quarter ending before September 30, 2026, and 4.00 to 1.00 for quarters ending on or after that date. The consolidated interest coverage ratio must be at least 2.50 to 1.00 on a rolling four-quarter basis.

Obligations under the credit agreement remain secured by the ownership interests in Centuri Holdings’ direct and indirect subsidiaries, their tangible and intangible personal property, and related proceeds.

This information is based on a press release statement and details contained in a recent SEC filing.

In other recent news, Centuri Holdings, Inc. announced securing over $550 million in new infrastructure contracts, including a multi-year renewal with a major Midwest utility and a Renewable Natural Gas facility project in the Northeast. Additionally, the company revealed it had previously secured $575 million in contracts, highlighting its ongoing expansion and partnership with natural gas utilities. Meanwhile, S&P Global Ratings revised Centuri’s outlook to stable from developing, affirming its ’B+’ issuer credit rating. This change reflects expectations of EBITDA growth and a stable debt-to-EBITDA ratio, despite a 20% decline in EBITDA during 2024. Centuri plans to refinance existing facilities with a new $450 million revolving credit facility and a $770 million term loan, addressing uncertainties about its capital structure post-separation from Southwest Gas Holdings, Inc.

In related developments, Southwest Gas Holdings announced a secondary public offering of 9.5 million shares of Centuri, with an option for underwriters to purchase an additional 1.425 million shares. Concurrently, Southwest Gas entered into an agreement to sell $22 million in Centuri shares to entities affiliated with Carl C. Icahn in a private placement. The private placement is contingent on regulatory approval and must close by July 9, 2025. These moves are part of Southwest Gas’s ongoing reduction of its stake in Centuri, which has decreased from 81% to approximately 53%.

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