#United States #The Woodlands #Credit Facility #Sterling Infrastructure #Joe Cutillo

Sterling Infrastructure's Credit Facility Expansion

Sterling Infrastructure, Inc. (NasdaqGS: STRL), a key player in E-Infrastructure, Transportation, and Building Solutions, has recently made headlines with the announcement of a significant amendment to its credit facility. The amendment extends the maturity of the credit agreement to June 2028 and boosts its size, providing enhanced flexibility crucial for the company's growth endeavors.

Key Details of the Amendment

The newly structured credit facilities now include a remarkable $300 million term loan alongside a $150 million revolving credit facility. As of June 5, 2025, the company had utilized the full amount of the term loan, while the revolving credit facility remains undrawn, providing Sterling with approximately $785 million in cash reserves.

This amendment, brokered by BMO Capital Markets Corp. and supported by multiple financial institutions, allows for the potential to further increase the credit facilities. Sterling can leverage up to $400 million or 100% of its EBITDA, plus an unlimited amount subject to a leverage ratio cap of 2.0X. This financial maneuver not only demonstrates the company’s robust fiscal health but also provides additional resources for expansion.

Interest Rates and Repayment Structure

Under the amended terms, the loans accrue interest at either a base rate or SOFR, depending on the Total Net Leverage Ratio. Notably, the applicable margin rates have been reduced by 25 basis points, highlighting a favorable adjustment in terms of borrowing costs for Sterling.

Repayment of the term loans is set to commence quarterly starting September 30, 2025, with payments structured at 1.25% of the initial principal amount—amounting to $3.75 million per quarter. This is a significant reduction from previous obligations of $6.56 million per quarter, easing the cash flow pressures on the company. Furthermore, the covenants under the revised facility are less stringent than those set forth in the previous agreement, providing additional operational flexibility.

Leadership’s Insights

Joe Cutillo, the CEO of Sterling, expressed gratitude towards the company's lenders, emphasizing their strong relationships. He stated, “We are fortunate to have great relationships with our key lenders and appreciate their support and confidence in our outlook. The extension and expansion of our credit facility, combined with the enhanced flexibility, position us well as we work to grow the business both organically and through M&A opportunities.”

Company Overview

Sterling Infrastructure operates across various segments within the United States, focusing on impactful E-Infrastructure Solutions that encompass large-scale site development for industries such as manufacturing and data centers. Other offerings in Transportation Solutions cater to essential infrastructure projects while Building Solutions cover both residential and commercial constructions. Committed to sustainability, Sterling’s approach integrates responsible practices aimed at uplifting community and investor interests.

Through strategic management and operational agility, Sterling Infrastructure is poised to embark on new growth opportunities while maintaining its foundational ethos of serving society responsibly. As CEO Joe Cutillo aptly put it, “We build and service the infrastructure that enables our economy to run, our people to move and our country to grow.” This recent credit facility extension positions Sterling well to further its mission and agenda in the growing infrastructure market.