FORT
WORTH, Texas, 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 maintaining and
building critical infrastructure today announced that the Company
is launching the syndication of a new 7-year $1.3 billion First Lien Senior Term Loan ("2022
Term Loan B").
The 2022 Term Loan B, along with a new 5-year $400 million pari passu First Lien Revolving
Credit Facility ("Revolver") and a proposed $240 million investment by funds managed by
Blackstone's (NYSE: BX) Tactical Opportunities business
("Blackstone"), will be used to refinance the Company's existing
debt structure and to fund the purchase of Sequa's Precoat Metals
business division ("Precoat" or the "Transaction") for a purchase
price of approximately $1.28 billion
as previously announced on March 7,
2022.
The 2022 Term Loan B and the Blackstone investment are
contingent upon the closing of Precoat acquisition. The 2022 Term
Loan B and the Revolver will be guaranteed by AZZ Inc.'s existing
and future material wholly-owned domestic subsidiaries. The
proposed Blackstone investment will be junior to the 2022 Term Loan
B, the Revolver and the Company's other indebtedness and is
expected to be convertible into shares of AZZ's common stock. The
final terms and amounts of the 2022 Term Loan B, the Revolver and
the proposed Blackstone investment are subject to market and other
conditions and may be materially different than expectations. The
proposed Blackstone investment 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 provider of galvanizing and a variety of
metal coating solutions, welding solutions, specialty electrical
equipment and highly engineered services to a broad range of
markets, including, but not limited to, the 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, spin galvanizing, powder coating, anodizing and
plating, to the North American steel fabrication industry.
AZZ's Infrastructure Solutions segment is dedicated to delivering
safe and reliable transmission of power from generation sources to
end customers, and automated weld overlay solutions for corrosion
and erosion mitigation to critical infrastructure in the energy and
waste management markets worldwide.
Safe Harbor Statement
Certain statements herein about 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," "continue," or the negative of these terms or other
comparable terminology. Such forward-looking statements are based
on currently available competitive, financial and economic data and
management's views and assumptions regarding future events. Such
forward-looking statements are inherently uncertain, and investors
must recognize that actual results may differ from those expressed
or implied in 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 by
the power generation markets, electrical transmission and
distribution markets, the industrial markets, and the metal
coatings markets. In addition, within each of the markets we
serve, our customers and our operations could potentially continue
to be adversely impacted by the ongoing COVID-19 pandemic,
including governmental issued mandates regarding the same. We could
also experience additional increases in labor costs, 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 of our products or services; delays in
additional acquisition or disposition opportunities; currency
exchange rates; availability of experienced management and
employees to implement AZZ's growth strategy; a downturn in market
conditions in any industry relating to the products we inventory or
sell or the services that we provide; economic volatility or
changes in the political stability in the
United States and other foreign markets in which we operate;
acts of war or terrorism inside the
United States or abroad; and other changes in economic and
financial conditions. AZZ has 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 filings with the
Securities and Exchange Commission ("SEC"), available for viewing
on AZZ's website at www.azz.com and on the SEC's website at
www.sec.gov. You are urged to consider these factors
carefully in evaluating the forward-looking statements herein and
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 assumes 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.