Sterling Infrastructure, Inc. has announced a significant enhancement to its financial position through the execution of a second amended and restated credit agreement. The new agreement extends the maturity of the company’s credit facility to July 2031, increases total borrowing capacity to $1.5 billion, and provides greater financial flexibility to support the company’s long-term growth strategy and operational needs.
The amended agreement replaces Sterling’s existing term loan and revolving credit facilities with a new revolving credit facility that offers substantially higher borrowing capacity. The new facility represents an increase of $1.05 billion over the company’s previous credit facilities, providing Sterling with enhanced access to capital for strategic investments and future expansion opportunities.
The refinancing marks an important milestone for the company as it continues to strengthen its balance sheet while maintaining the flexibility needed to pursue growth across its infrastructure businesses. By extending the maturity of the facility by several years, Sterling has secured long-term financing under improved terms, positioning the company to respond efficiently to changing market conditions and capitalize on emerging opportunities.
The amended credit agreement was arranged by BMO Capital Markets Corp., which served as Joint Lead Arranger and Joint Book Runner, while BMO Bank N.A. continues to act as Administrative Agent for the facility. The syndication process attracted participation from a broad group of leading national and regional financial institutions, resulting in expanded lender support and a more diversified banking group.
According to the company, the proceeds available under the new revolving credit facility will be used for a variety of corporate purposes. These include refinancing and prepaying existing debt obligations, funding capital expenditures, supporting permitted acquisitions, and meeting other general corporate financing requirements. The enhanced facility gives Sterling additional liquidity to invest in projects, pursue strategic acquisitions, and maintain operational flexibility as market opportunities arise.
Beyond the increase in borrowing capacity, the amended credit agreement introduces several improvements designed to reduce financing costs and provide greater operational flexibility.
One of the key enhancements is the increase in the base amount of the incremental facility from $400 million to $500 million. This additional capacity enables Sterling to access further financing in the future if needed, providing an important source of capital for expansion initiatives or other strategic investments.
The agreement also delivers more favorable borrowing terms by reducing the company’s interest costs. Sterling eliminated the previous 10-basis point SOFR adjustment, while also securing lower pricing margins that are tied to its Total Net Leverage Ratio. These changes are expected to reduce the overall cost of borrowing and improve financing efficiency over the life of the facility.
In addition, the amended agreement includes generally less restrictive financial covenants compared with the previous credit facilities. The increased covenant flexibility provides Sterling with greater freedom to manage its operations, allocate capital efficiently, and pursue business opportunities while maintaining prudent financial discipline.
The expansion of the credit facility reflects the confidence of Sterling’s banking partners in the company’s financial strength, business strategy, and future growth prospects. The strong participation from both existing and new lenders demonstrates continued support for Sterling’s long-term objectives and its position within the infrastructure construction industry.
The new financing structure provides Sterling with a solid foundation to execute its strategic priorities over the coming years. With increased liquidity, lower borrowing costs, enhanced financing flexibility, and an extended maturity profile, the company is well positioned to support ongoing operations, invest in infrastructure projects, pursue acquisitions that complement its business, and create long-term value for shareholders.
By securing a larger and more flexible credit facility through 2031, Sterling Infrastructure has further strengthened its financial resources, ensuring it has the capital and flexibility needed to support sustainable growth while continuing to meet the evolving needs of its customers and stakeholders.
CFO Remarks
“The expansion and extension of our credit facility reflects the confidence that our lending partners share in our long-term strategy and outlook,” stated Nick Grindstaff, Sterling’s CFO. “We appreciate the confidence and support from our lending group, whose partnership is instrumental in supporting our growth.”
Mr. Grindstaff continued, “This enhanced credit facility further strengthens our financial flexibility, providing additional capacity to invest in organic growth, pursue strategic M&A, and capitalize on the significant opportunities across our end markets. With our strong balance sheet and ample liquidity, we believe we are well positioned to execute our strategy and continue creating value for our shareholders.”
About Sterling
Sterling Infrastructure, Inc., operates through a variety of subsidiaries within three segments specializing in E-Infrastructure, Transportation and Building Solutions in the United States, primarily across the Southern, Northeastern, Mid-Atlantic and Rocky Mountain regions and the Pacific Islands. E-Infrastructure Solutions provides advanced, large-scale site development services and mission-critical electrical services for data centers, semiconductor fabrication, manufacturing, distribution centers, warehousing, power generation and more. Transportation Solutions includes infrastructure and rehabilitation projects for highways, roads, bridges, airports, ports, rail and storm drainage systems. Building Solutions includes residential and commercial concrete foundations for single-family and multi-family homes, parking structures, elevated slabs, other concrete work, plumbing services, and surveys for new single-family residential builds. From strategy to operations, we are committed to sustainability by operating responsibly to safeguard and improve society’s quality of life. Caring for our people and our communities, our customers and our investors – that is The Sterling Way.
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