Orion Concrete closes $135 million term loan A, $50 million revolver

By Tali Rackner

Norfolk, Va., Aug. 12 – Orion Concrete Construction, LLC entered into a $185 million five-year syndicated credit facility on Aug. 5 led by Regions Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The facility is comprised of a $135 million term loan A and a $50 million revolver. There is a $20 million sublimit for the issuance of letters of credit.

The credit facility has a $40 million accordion option.

Interest is equal to Libor plus 175 basis points to 300 bps, based on the company’s consolidated leverage ratio. The letter of credit fee is also 175 bps to 300 bps, and the commitment fee ranges from 37.5 bps to 50 bps.

The facility matures on Aug. 5, 2020.

Certain financial covenants require Orion to maintain a maximum consolidated leverage ratio at the end of any fiscal quarter of 3.25 times from closing through Dec. 31, 2015; 3 times through June 30, 2016; 2.75 times through Dec. 31, 2016; and 2.5 times thereafter. The company must also maintain a minimum consolidated fixed-charge coverage ratio of 1.25 times.

Total debt outstanding at the completion of the transaction is $149 million, with about $36 million available under the revolving credit facility.

Bank of America, NA, BOKF, NA (doing business as Bank of Texas) and Branch Banking and Trust Co. are co-syndication agents, and Regions Capital Markets is lead arranger and book manager.

Orion Concrete is a subsidiary of Orion Marine Group, Inc., a Houston-based marine specialty contractor serving the heavy civil marine infrastructure market.

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