Commercial Metals Company Secures $150 Million Tax-Exempt Bond Financing

Commercial Metals Company (CMC), noted for its innovative solutions in the steel industry, recently declared that it has successfully priced a significant bond financing operation amounting to $150 million. This move comes as part of its strategic development to enhance solid waste disposal facilities located in Berkeley County, West Virginia. The bonds, recognized as the Solid Waste Disposal Facility Revenue Bonds (Commercial Metals Company Project), Series 2025, will be issued through the West Virginia Economic Development Authority (WVEDA).

The bonds were sold at a price equal to the full principal amount, generating expected proceeds of $150 million for CMC. The interest rate determined for these bonds is set at 4.625% annually, which will hold true through an initial term period ending with a mandatory purchase tender on May 15, 2032. Following this period, the bonds are set to mature in 2055.

Importantly, the bonds will not be registered under the Securities Act of 1933 or any other state or local securities laws, making them unavailable for sale to U.S. persons, with specific exemptions applying. The legal frameworks guiding the transaction ensure compliance without offering securities where prohibited, reflecting the company's commitment to navigating complex regulatory landscapes effectively.

CMC aims to utilize the capital raised to finance a portion of the costs associated with constructing the new waste disposal facilities, which are essential to enhancing the region's infrastructure and environmental management. This endeavor underscores CMC's dedication not only to its manufacturing capabilities but also to sustainable development practices that align with modern environmental standards.

About Commercial Metals Company

CMC is a notable player in the construction sector, offering reinforcement solutions that cater to various applications from infrastructure and residential construction to energy generation and industrial needs. With a robust manufacturing network primarily based in the U.S. and Central Europe, CMC continues to position itself as an innovator in providing technologies that meet the demands of the evolving construction industry.

The recent bond issuance reflects CMC’s forward-looking strategy to fund initiatives aimed at strengthening its operational footprint, thereby meeting the critical demands of the global construction industry while advocating for responsible environmental practices. CMC's proactive measures in securing tax-exempt financing not only demonstrate its financial acumen but also its agility in addressing the sector's pressing challenges, such as sustainability and increased regulatory scrutiny on environmental practices.

Moving forward, CMC remains committed to transparency with its stakeholders, ensuring that updates regarding the progress and utilization of the bond proceeds will be communicated effectively. The company also emphasizes that while these forward-looking financial strategies aim to capitalize on estimated costs of projects, actual results may vary, reinforcing the dynamic nature of financial projections within the infrastructure sector.

In conclusion, Commercial Metals Company’s recent bond financing is a strategic step towards enhancing environmental management in West Virginia, reinforcing its role as a leader in sustainable industrial practices, and addressing the critical needs of the construction sector in an environmentally responsible manner. As CMC embarks on this ambitious path, stakeholders can anticipate continued developments that align with both economic growth and heightened standards of sustainability.