Concrete Pumping Holdings announces $425 million in senior secured notes, funding debt redemption and a special $1.00 dividend.
Quiver AI Summary
Concrete Pumping Holdings, Inc. announced the successful closing of a private offering of $425 million in senior secured second lien notes due 2032 by its subsidiary, Brundage-Bone Concrete Pumping Holdings, Inc. The notes, issued at a fixed interest rate of 7.500% per annum, will be guaranteed by the Company and its subsidiaries. Proceeds from the offering will be used to redeem outstanding senior secured notes due 2026, pay related expenses, and fund a special one-time dividend of $1.00 per share, totaling approximately $53 million. CEO Bruce Young emphasized that this refinancing strengthens the Company's balance sheet and reflects its commitment to returning capital to shareholders while maintaining strong cash flow and liquidity for future growth.
Potential Positives
- Successful closure of a $425 million private offering of senior secured second lien notes strengthens the company's balance sheet and refinancing strategy.
- Issuance of the Notes allows for the redemption of lower interest senior secured notes, improving overall debt structure.
- A special one-time dividend of $1.00 per share, totaling approximately $53 million, demonstrates a commitment to returning excess capital to shareholders and highlights confidence in future cash flow generation.
- The issuance is accompanied by strategic commentary from the CEO, underscoring the company's history of prudent capital allocation and focusing on long-term growth strategies.
Potential Negatives
- The refinancing involves taking on new debt with a higher interest rate (7.500%) compared to the previous notes (6.000%), which may increase financial strain in the long term.
- The need to raise $425 million through debt issuance suggests potential underlying financial instability or cash flow issues that necessitated this action.
- The offering of the Notes is restricted to qualified institutional buyers, which may limit the company's ability to attract a wider range of investors or underwriters.
FAQ
What is the purpose of the recent note issuance by Concrete Pumping Holdings?
The proceeds from the $425 million note issuance were used to redeem existing debt and fund a special dividend.
What is the interest rate on the new senior secured notes?
The new senior secured notes bear a fixed interest rate of 7.500% per annum.
How much will the special dividend be per share?
The special one-time dividend will be $1.00 per share of common stock.
Who is eligible to purchase the newly issued notes?
The notes were offered only to qualified institutional buyers and foreign entities outside the U.S.
What is Concrete Pumping Holdings' market presence?
Concrete Pumping Holdings operates in the U.S. and U.K. with approximately 90 locations across 22 states and 35 locations in the U.K.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BBCP Hedge Fund Activity
We have seen 58 institutional investors add shares of $BBCP stock to their portfolio, and 38 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALTRAVUE CAPITAL, LLC removed 2,446,966 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $14,167,933
- MILL ROAD CAPITAL MANAGEMENT LLC added 526,379 shares (+96.8%) to their portfolio in Q3 2024, for an estimated $3,047,734
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC added 506,530 shares (+inf%) to their portfolio in Q3 2024, for an estimated $2,932,808
- LEGATO CAPITAL MANAGEMENT LLC removed 491,866 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $2,847,904
- JENNISON ASSOCIATES LLC added 167,262 shares (+10.8%) to their portfolio in Q4 2024, for an estimated $1,113,964
- TROLUCE CAPITAL ADVISORS LLC added 149,015 shares (+inf%) to their portfolio in Q3 2024, for an estimated $862,796
- CITADEL ADVISORS LLC added 142,726 shares (+140.5%) to their portfolio in Q3 2024, for an estimated $826,383
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Full Release
DENVER, Feb. 03, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company” or “CPH”), a leading provider of concrete pumping and concrete waste management services in the U.S. and U.K., announced that Brundage-Bone Concrete Pumping Holdings, Inc. (the “Issuer”), a wholly-owned subsidiary of the Company, has successfully closed its private offering of $425.0 million in aggregate principal amount of senior secured second lien notes due 2032 (the “Notes”). The Notes were issued at par and bear interest at a fixed rate of 7.500% per annum. The Issuer’s obligations under the Notes will be guaranteed by the Company, Concrete Pumping Intermediate Acquisition Corp. and each of the Issuer’s domestic, wholly-owned subsidiaries that is a borrower under or guarantees the ABL Facility.
The proceeds of the Notes were used to pay the redemption price for all of the Company’s outstanding 6.000% senior secured second lien notes due 2026 and to pay related fees and expenses thereto. In addition, the remainder of the net proceeds of the Notes, together with cash on hand, will be used to pay a special one-time dividend of $1.00 per share of the common stock of the Company (approximately $53 million in the aggregate) on or about February 3, 2025.
“The closing of our senior notes refinancing strengthens our balance sheet and represents a significant milestone in our evolution, underscoring our consistent operating performance and healthy free cash flow generation,” said Bruce Young, CEO of CPH. “In the past, we have executed a range of capital allocation priorities, including organic growth investments in our concrete pumping fleet and Eco-Pan, opportunistic M&A, debt reduction and share buybacks. Now, returning excess capital to our shareholders in the form of a special dividend augments our capital allocation strategy and highlights our commitment to driving superior shareholder value. The special dividend also reflects our confidence in the Company’s strong and consistent free cash flow generation, all while maintaining prudent leverage and ample liquidity to invest in our long-term growth strategy.”
The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes were offered and sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
About Concrete Pumping Holdings
Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets based on fleet size, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 35 locations, and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K.
Important Notice Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “expect,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are based on management’s reasonable current assumptions, expectations and plans regarding the Company’s and the Issuer’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks and uncertainties, including the Company’s ability to execute on its strategic growth plan and other factors disclosed in the risk factor sections of the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, any of which may cause the actual results, levels of activity, performance or achievement of the Company or the Issuer to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events.
All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Contact:
Company:
Iain Humphries Chief Financial Officer 1-303-289-7497 |
Investor Relations:
Gateway Investor Relations Cody Slach 1-949-574-3860 [email protected] |