AZZ reprices revolving facility for 125 bps reduction in margin

By Wendy Van Sickle

Columbus, Ohio, Dec. 21 – AZZ Inc. repriced its $400 million senior secured revolver due May 2027, reducing the leverage-based pricing to a range of SOFR plus 275 basis points to SOFR plus 350 bps, according to a news release.

The margin is initially 300 bps. AZZ also removed the credit spread adjustment of 10 bps.

The company said the repricing results in an immediate reduction in the revolver pricing of 125 bps.

The commitment fee was also reduced and will now range from 25 bps to 50 bps, depending on leverage ratio, according to an 8-K filing with the Securities and Exchange Commission.

There were no other changes to the credit agreement with Citibank, NA as administrative agent.

Since acquiring Precoat Metals in May 2022, AZZ has reduced its principal balance and interest rate on its term loan B, and it will continue to focus on lowering its net debt to EBITDA leverage ratio to its targeted range of below 3.0 times, the company said.

AZZ is a Fort Worth-based provider of hot-dip galvanizing and coil coating solutions.

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