STRL · Sterling Infrastructure, Inc.

Sterling Infrastructure has successfully refinanced and upsized its credit facility through a Second Amended and Restated Credit Agreement, which significantly enhances its financial flexibility. The new facility increases borrowing capacity by $1.05 billion to a total of $1.5 billion, providing ample liquidity for strategic initiatives including organic growth, capital expenditures, and potential acquisitions. The maturity extension to July 2031 reduces near-term refinancing risk and aligns with the company's long-term investment horizon. Importantly, the interest rate structure was improved by eliminating the 10 basis point SOFR credit spread adjustment and reducing overall pricing margins based on leverage, which will lower borrowing costs. The inclusion of an incremental facility, capped at $500 million or 100% of EBITDA (with an unlimited amount under a stricter leverage test), offers additional capacity for large-scale opportunities. Financial covenants remain prudent, with a maximum Total Net Leverage Ratio of 3.50:1.00 (temporarily adjustable to 4.00:1.00 for qualifying acquisitions) and a minimum Interest Coverage Ratio of 3.00:1.00, ensuring disciplined capital management. As of closing, $90 million was drawn, primarily to refinance existing indebtedness. CFO Nicholas Grindstaff highlighted that the enhanced facility underscores lender confidence in Sterling's strategy and positions the company to capitalize on growth opportunities across its end markets. This credit agreement strengthens Sterling's balance sheet and supports its long-term value creation.