AZZ, Prudential Investment sign $100 million shelf agreement

By Lisa Kerner

Charlotte, N.C., Nov. 1 - AZZ Inc. agreed to issue up to $100 million of senior notes to Prudential Investment Management, Inc. under an Oct. 28 private placement shelf note agreement.

The agreement covers a three-year issuance period, according to an 8-K filing with the Securities and Exchange Commission.

The notes will have a make-whole call at Treasuries plus 50 basis points.

Covenants under the shelf agreement limit AZZ's ability to, among other things, incur additional debt, incur liens, make dispositions of assets, enter into transactions with affiliates and merge, consolidate, transfer, sell or lease all or substantially all of its assets.

In addition, at the end of each fiscal quarter, AZZ's ratio of consolidated debt to consolidated EBITDA must not exceed 3.25 to 1, its fixed charges coverage ratio must be less than 2 to 1, and its priority debt may not exceed 10% of the company's consolidated net worth.

AZZ is a specialty electrical equipment manufacturer based in Fort Worth.

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