AZZ Inc. Successfully Refinances Term Loan B, Resulting in Significant Interest Savings

AZZ Inc. Completes Term Loan B Refinancing

In a noteworthy update from Fort Worth, Texas, AZZ Inc. (NYSE: AZZ), a leading independent provider of hot-dip galvanizing and coil coating solutions in North America, announced the successful completion of its Term Loan B refinancing. This strategic move marks a significant step for the company, reflecting their commitment to maintaining financial efficiency in an ever-competitive market.

On August 5, 2025, AZZ Inc. disclosed that they managed to reprice their existing Term Loan B facility, which was previously valued at approximately $434.9 million and is set to mature on May 13, 2029. This refinancing will reduce the interest rate margin by 75 basis points, resulting in the new rate being SOFR + 175 basis points. Such a reduction is projected to yield annual savings of around $3.3 million in interest payments.

Jason Crawford, Chief Financial Officer of AZZ Inc., expressed satisfaction with the outcome, stating, "We are pleased to announce the successful completion of our Term Loan B refinancing once again. We achieved a 75-basis point reduction on our loan borrowing rate with no change to our leverage, covenants, or maturity date." This marks the fourth time AZZ has successfully repriced this loan since its inception in 2022. In total, the company has secured interest rate margin savings amounting to 250 basis points since the initial borrowing.

Since acquiring Precoat Metals in May 2022, AZZ has taken a disciplined approach towards their financial management, effectively reducing both the principal and interest rates associated with their Term Loan B. As of May 2025, AZZ's net debt to EBITDA leverage ratio stood at 1.7x, indicating a steady improvement in financial health and sustainability.

AZZ Inc. plays a vital role in providing innovative metal coating solutions across numerous sectors. Its services enhance the durability and aesthetic appeal of vital infrastructure and products that are integral to daily life. Their offerings are not only focused on quality but also prioritize sustainability, ensuring that their operations contribute positively to environmental standards.

The successful refinancing route represents more than just financial savings; it is a testament to AZZ's commitment to strategic financial planning and effective management of resources, which ultimately positions the company for future growth and expansion in a dynamic industry.

As part of their continuous improvement strategy, AZZ Inc. actively monitors market conditions, customer demand, and overall economic factors affecting their business. This forward-looking approach helps them adapt to various challenges and capitalize on opportunities within the competitive landscape of metal coating solutions.

Conclusion

The refinancing of Term Loan B signals AZZ Inc.'s ongoing efforts to maintain a robust financial footprint while delivering unmatched service in the metal coating sector. Stakeholders can anticipate further developments as AZZ continues to streamline its operations and enhance profitability in the years to come.