FORT WORTH, TX, April 25, 2022 /PRNewswire/ — AZZ Inc. (“AZZ” or the “Company”) (NYSE: AZZ), a global provider of galvanizing and metal coating solutions, welding solutions, specialty electrical equipment and highly engineered services for the maintenance and construction of critical infrastructure, announced today that the company launches the syndication of a new 7-year contract $1.3 billion Senior Senior Term Loan (“Term Loan B 2022”).
Term Loan B 2022, with a new 5-year loan $400 million pari passu Senior Revolving Credit Facility (“Revolver”) and a project $240 million investment by funds managed by the Tactical Opportunities business of Blackstone (NYSE: BX) (“Blackstone”), will be used to refinance the Company’s existing debt structure and to finance the purchase of the Precoat business division Sequa Metals (“Precoat” or the “Transaction”) for a purchase price of approximately $1.28 billion as previously announced on March 7, 2022.
The 2022 B term loan and investment in Blackstone are contingent upon the closing of the Precoat acquisition. The B 2022 Term Loan and Revolver will be guaranteed by existing and future major national subsidiaries wholly owned by AZZ Inc. Blackstone’s proposed investment will be less than the B 2022 Term Loan, Revolver and other indebtedness of the company and is expected to be convertible into common stock of AZZ. The final terms and amounts of the B 2022 Term Loan, the Revolver and the proposed Blackstone investment are subject to market and other conditions and may differ materially from expectations. The proposed investment in Blackstone is also subject to the negotiation and execution of definitive documentation mutually acceptable to the Company and Blackstone.
About AZZ Inc.
AZZ Inc. is a global supplier of galvanizing and a variety of metal coating solutions, welding solutions, specialty electrical equipment and highly technical services to a wide range of markets including, but not limited to limit, power generation, transmission, distribution, refining and industrial markets. AZZ’s Metal Coatings segment is a leading provider of metal finishing solutions for corrosion protection, including hot-dip galvanizing, hot-dip galvanizing, powder coating, anodizing and electroplating. plating, for the North American steel fabrication industry. AZZ’s Infrastructure Solutions segment is dedicated to providing safe and reliable transmission of electricity from generation sources to end customers, and automated weld overlay solutions for corrosion and corrosion mitigation. erosion to critical infrastructure in energy and waste management markets worldwide.
Safe Harbor Statement
Certain statements below regarding our expectations of future events or results constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify forward-looking statements by terminology such as “may” , “should,” “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential”, “continues” or the negative form of these terms or any other terminology comparable. These forward-looking statements are based on currently available competitive, financial and economic data and management’s beliefs and assumptions regarding future events. These forward-looking statements are inherently uncertain and investors should recognize that actual results may differ from those expressed or implied by the forward-looking statements. Certain factors could affect the outcome of the matters described herein. This press release may contain forward-looking statements that involve risks and uncertainties, including, but not limited to, changes in customer demand for our products and services, including demand from production markets. markets, electricity transmission and distribution markets, industrial markets and metal coatings markets. Additionally, within each of the markets we serve, our customers and operations could potentially continue to be impacted by the ongoing COVID-19 pandemic, including government-issued mandates in this regard. We may also incur additional cost increases for labor, components and raw materials, including zinc and natural gas, which are used in our hot-dip galvanizing process; supply chain vendor delays; customer requested delays for our products or services; delays in additional acquisition or divestiture opportunities; exchange rate; the availability of experienced management and employees to execute AZZ’s growth strategy; a decline in market conditions in any industry related to the products we stock or sell or the services we provide; economic volatility or changes in political stability United States and other foreign markets in which we operate; acts of war or terrorism within United States or abroad; and other changes in economic and financial conditions. AZZ provided additional information regarding risks associated with the business in AZZ’s Annual Report on Form 10-K for the fiscal year ended February 28, 2022 and other documents filed with the Securities and Exchange Commission (“SEC”), available for viewing on AZZ’s website at www.azz.com and on the SEC website at www.sec.gov. You are urged to carefully consider these factors when evaluating the forward-looking statements contained herein and you are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by this cautionary statement. These statements are based on information as of the date hereof, and AZZ undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE AZZ inc.
