Sterling Infrastructure, Inc. (NasdaqGS: STRL) (“Sterling” or “the Company”) has announced an amendment to its existing 2019 credit agreement, significantly enhancing its financial position. The revised agreement extends the maturity of the credit facility to June 2028, increases its size, and introduces more favorable terms to support the Company’s strategic growth initiatives.
Under the amended terms, the facility now includes a $300 million term loan and a $150 million revolving credit line. As of June 5, 2025, Sterling had fully drawn the $300 million term loan, while the revolving credit line remained undrawn. The Company also reported cash and cash equivalents totaling $785 million.
The credit agreement amendment was arranged by BMO Capital Markets Corp. and BofA Securities, Inc., both serving as Joint Lead Arrangers and Joint Book Runners. BMO Bank N.A. acts as Administrative Agent, while Bank of America, N.A. serves as Syndication Agent.
Key Improvements to the Facility Include:
- Increased Upsizing Capacity: The facility allows for potential expansion by the greater of $400 million or 100% of Sterling’s EBITDA, with an additional unlimited increase permitted up to 2.0x Total Net Leverage.
- Lower Interest Margins: Interest on loans will continue to be based on either a base rate or SOFR, with applicable margins now reduced by 25 basis points depending on the Total Net Leverage Ratio.
- Reduced Amortization Requirements: Starting September 30, 2025, the Company will repay the term loan in quarterly installments of $3.75 million—equivalent to 1.25% of the original principal—down from $6.56 million under the prior agreement.
- Improved Covenant Flexibility: The amendment includes less restrictive covenants, providing greater financial and operational leeway.
Executive Commentary:
Joe Cutillo, CEO of Sterling, commented, “We’re fortunate to have strong, supportive relationships with our lending partners. This extended and expanded credit facility, along with its improved terms, strengthens our financial flexibility as we continue to drive growth through both organic initiatives and strategic acquisitions.”
The revised credit facility marks a proactive step in Sterling
About Sterling
Sterling Infrastructure, Inc., (“Sterling,” “the Company,” “we,” “our” or “us”) 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 for manufacturing, data centers, 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.
