L.B. Foster Company increases credit capacity to $150 million and extends maturity to June 2020, enabling growth investments.
Quiver AI Summary
L.B. Foster Company announced an expansion of its borrowing capacity from $130 million to $150 million and the addition of a $60 million incremental loan feature as part of a new Fifth Amended and Restated Credit Agreement. This agreement, effective June 27, 2025, extends the credit facility's maturity to June 27, 2030, and introduces improved pricing and more flexible covenants, enabling the company to invest in growth initiatives and corporate finance strategies. Bill Thalman, CFO, expressed satisfaction with the supportive terms provided by banking partners, emphasizing the improvements in financing costs and reduced restrictions, which align with the company's strategic goals in Rail Technologies and Precast Concrete. The credit facility is managed by a syndicate led by PNC Bank, with several other major banks participating.
Potential Positives
- Borrowing capacity expanded from $130 million to $150 million, providing additional financial resources for the company.
- Facility maturity extended five years to June 27, 2030, allowing more time for financial planning and investments.
- Improved pricing grid that reduces overall financing costs for the company.
- Revised terms provide greater flexibility for investments in growth programs and corporate finance initiatives.
Potential Negatives
- Increased borrowing capacity could indicate previous cash flow issues or financial instability that necessitated an expansion of credit options.
- The necessity for a revised and more accommodating covenant package may suggest past difficulties in maintaining compliance with original agreements, raising concerns about financial management.
- The press release includes a lengthy list of risks and uncertainties, implying significant external pressures that could negatively impact the company's future performance.
FAQ
What is the new borrowing capacity for L.B. Foster Company?
The new borrowing capacity has been expanded from $130 million to $150 million.
When does the facility maturity date extend to?
The facility maturity date has been extended to June 27, 2030.
What are the benefits of the revised credit agreement?
The revised credit agreement provides greater flexibility, improved pricing, and fewer restrictions on corporate finance transactions.
Who are the banking partners involved in this credit agreement?
The banking partners include PNC Bank, Bank of America, Citizens Bank, Wells Fargo Bank, and Dollar Bank.
What purposes can the credit agreement funds be used for?
The funds can be used for working capital, capital expenditures, acquisitions, and general corporate purposes.
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.
$FSTR Hedge Fund Activity
We have seen 40 institutional investors add shares of $FSTR stock to their portfolio, and 51 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- AZARIAS CAPITAL MANAGEMENT, L.P. removed 240,991 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $4,742,702
- BRANDES INVESTMENT PARTNERS, LP added 142,480 shares (+16.5%) to their portfolio in Q1 2025, for an estimated $2,804,006
- VANGUARD GROUP INC added 54,616 shares (+12.6%) to their portfolio in Q1 2025, for an estimated $1,074,842
- SYSTEMATIC FINANCIAL MANAGEMENT LP removed 50,915 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $1,002,007
- FRANKLIN RESOURCES INC removed 44,997 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $1,210,419
- LPL FINANCIAL LLC removed 39,428 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $1,060,613
- MILLENNIUM MANAGEMENT LLC removed 38,425 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $756,204
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Full Release
- Borrowing capacity expanded from $130 million to $150 million with an additional $60 million incremental loan feature available
- Facility maturity extended five years to June 27, 2030 with an improved pricing grid
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Revised terms provide greater flexibility to invest in growth programs and corporate finance initiatives
PITTSBURGH, June 30, 2025 (GLOBE NEWSWIRE) -- L.B. Foster Company (Nasdaq: FSTR), a global technology solutions provider of products and services for the rail and infrastructure markets (the “Company”), today announced that on June 27, 2025, it entered into a Fifth Amended and Restated Credit Agreement (the “Credit Agreement”) to, among other considerations, extend the facility maturity date to June 27, 2030, increase borrowing capacity to $150 million, improve pricing, and provide a more accommodating covenant package with fewer corporate finance transaction restrictions. The Credit Agreement is available for working capital financing, capital expenditures, issuance of letters of credit, permitted acquisitions, and general corporate purposes.
Bill Thalman, Executive Vice President and Chief Financial Officer, said, “We’re very pleased with the outcome of the credit agreement amendment process. Our banking partners have been very supportive during our strategic transformation completed over the last several years. The agreed terms improve our overall cost of financing and substantially reduce restrictions while increasing our borrowing capacity, all of which were important objectives for us with the amendment. The favorable terms agreed highlight the progress we’ve made to improve the profitability and growth profile of the Company in line with our strategic playbook. We remain optimistic about the significant opportunities in our core growth platforms of Rail Technologies and Precast Concrete, and this improved facility structure provides the flexibility and capacity needed to continue our journey. I’d like to thank our treasury and legal teams for this important accomplishment, as well as our banking partners for their ongoing confidence in the potential of L.B. Foster."
The Company’s five-bank syndicate is led by PNC Bank, N.A. as Administrative Agent, with Bank of America, N.A., Citizens Bank, N.A., and Wells Fargo Bank N.A. as Co-Syndication Agents, and Dollar Bank, Federal Savings Bank as a participant. Additional information concerning the revolving credit facility can be found in the Current Report on Form 8-K filed with the Securities and Exchange Commission on June 30, 2025.
About L.B. Foster Company
Founded in 1902, L.B. Foster Company is a global technology solutions provider of products and services for the rail and infrastructure markets. The Company’s innovative engineering and product development solutions address the safety, reliability, and performance needs of its customers’ most challenging requirements. The Company maintains locations in North America, South America, Europe, and Asia. For more information, please visit www.lbfoster.com .
Forward-Looking Statements
This release may contain “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Forward-looking statements provide management's current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Sentences containing words such as “believe,” “intend,” “plan,” “may,” “expect,” “should,” “could,” “anticipate,” “estimate,” “predict,” “project,” or their negatives, or other similar expressions of a future or forward-looking nature generally should be considered forward-looking statements. Forward-looking statements in this earnings release are based on management's current expectations and assumptions about future events that involve inherent risks and uncertainties and may concern, among other things, the Company’s expectations relating to our strategy, goals, projections, and plans regarding our financial position, liquidity, capital resources, and results of operations and decisions regarding our strategic growth initiatives, market position, and product development. While the Company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the Company’s control. The Company cautions readers that various factors could cause the actual results of the Company to differ materially from those indicated by forward-looking statements. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Among the factors that could cause the actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties related to: a continuation or worsening of the adverse economic conditions in the markets we serve, including recession, the continued volatility in the prices for oil and gas, tariffs or trade wars, inflation, project delays, and budget shortfalls, or otherwise; volatility in the global capital markets, including interest rate fluctuations, which could adversely affect our ability to access the capital markets on terms that are favorable to us; restrictions on our ability to draw on our credit agreement, including as a result of any future inability to comply with restrictive covenants contained therein; a decrease in freight or transit rail traffic; environmental matters and the impact of environmental regulations, including any costs associated with any remediation and monitoring of such matters; the risk of doing business in international markets, including compliance with anti-corruption and bribery laws, foreign currency fluctuations and inflation, global shipping disruptions, the imposition of increased or new tariffs, and trade restrictions or embargoes; our ability to effectuate our strategy, including cost reduction initiatives, and our ability to effectively integrate acquired businesses or to divest businesses, such as the acquisition of VanHooseCo Precast LLC, and to realize anticipated benefits; costs of and impacts associated with shareholder activism; the timeliness and availability of materials from our major suppliers, as well as the impact on our access to supplies of customer preferences as to the origin of such supplies, such as customers’ concerns about conflict minerals; labor disputes; cybersecurity risks such as data security breaches, malware, ransomware, “hacking,” and identity theft, which could disrupt our business and may result in misuse or misappropriation of confidential or proprietary information, and could result in the disruption or damage to our systems, increased costs and losses, or an adverse effect to our reputation, business or financial condition; the continuing effectiveness of our ongoing implementation of an enterprise resource planning system; changes in current accounting estimates and their ultimate outcomes; the adequacy of internal and external sources of funds to meet financing needs, including our ability to negotiate any additional necessary amendments to our credit agreement or the terms of any new credit agreement, the Company’s ability to manage its working capital requirements and indebtedness; domestic and international taxes, including estimates that may impact taxes; domestic and foreign government regulations, including tariffs; our ability to maintain effective internal controls over financial reporting (“ICFR”) and disclosure controls and procedures, as well as our ability to reestablish effective disclosure controls and procedures; any change in policy or other change due to the results of the UK’s 2024 parliamentary election and the U.S. 2024 Presidential election that could affect UK or U.S. business conditions; other geopolitical conditions, including the ongoing conflicts between Russia and Ukraine, conflicts in the Middle East, and increasing tensions between China and Taiwan; a lack of or delay in state or federal funding for new infrastructure projects; an increase in manufacturing or material costs, including volatility in steel prices; the loss of future revenues from current customers; any future global health crises, and the related social, regulatory, and economic impacts and the response thereto by the Company, our employees, our customers, and national, state, or local governments, including any governmental travel restrictions; and risks inherent in litigation and the outcome of litigation and product warranty claims. Should one or more of these risks or uncertainties materialize, or should the assumptions underlying the forward-looking statements prove incorrect, actual outcomes could vary materially from those indicated. Significant risks and uncertainties that may affect the operations, performance, and results of the Company’s business and forward-looking statements include, but are not limited to, those set forth under Item 1A, “Risk Factors,” and elsewhere in our Annual Report on Form 10-K for the year ended December 31, 2024, or as updated and/or amended by our other current or periodic filings with the Securities and Exchange Commission.
The forward-looking statements in this release are made as of the date of this release and we assume no obligation to update or revise any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as required by the federal securities laws.
Investor Relations:
Lisa Durante
412-928-3400, and follow the prompts
[email protected]
L.B. Foster Company
415 Holiday Drive
Suite 100
Pittsburgh, PA 15220