NEW YORK, May 27, 2021 (GLOBE NEWSWIRE) – HC2 Holdings, Inc. (“HC2” or “the Company”) (NYSE: HCHC) today announced that its DBM Global (“DBM”) infrastructure business completed its announced the acquisition of a 100% interest in Banker Steel Holdco LLC (“Banker Steel”) from Atlas Holdings LLC (“Atlas”). DBM also announced that it has entered into a new credit agreement which provides for a $ 110 million term loan and a $ 110 million revolving credit facility (the “Credit Agreement”), which will be used to repay in full DBM’s existing debts, to finance part of the Banker Steel acquisition and provide additional working capital capacity.
The purchase price for the acquisition of the Banker Steel family of companies was $ 145 million (subject to working capital and other customary post-closing adjustments), which was funded by $ 64.1 million from the proceeds of the new term loan / revolving credit facility, $ 49.6 million in banknotes, $ 6.3 million in debt assumed by Banker Steel and $ 25 million in cash received of HC2 in settlement of certain intercompany balances.
Banker Steel, which is now a wholly owned subsidiary of DBM, is headquartered in Lynchburg, Va., And provides structural steel construction and erection services primarily for the East Coast commercial and industrial construction market. and south-east. Banker Steel consists of six operating companies: Banker Steel Co., LLC; New York Builders, LLC; Memco LLC; Derr & Isbell Construction LLC; Innovative retail and engineering solutions; and Lynchburg Freight and Specialty LLC. Don Banker, CEO, and his management team will continue their key roles with Banker Steel.
“We are delighted to add an industry leader with a renowned track record and an order book of over $ 800 million at the end of April,” said Rustin Roach, CEO and President of DBM. “Having overseen renowned projects including One Vanderbilt, the expansion of the Jacob K. Javits Convention Center, JP Morgan Headquarters and the Barclays Center, Banker’s prominent East Coast presence is an ideal complement to DBM’s predominantly west coast footprint. “
“The addition of the Banker Steel family of companies to DBM, which is already the largest steel fabrication and assembly company in the United States, provides DBM with increased geographic diversity that will allow the company to leverage fully capitalized on a market poised for significant growth, ”said Avie Glazer, President of HC2.
“With an expected return to pre-pandemic activity levels for the remainder of 2021 and through 2022, coupled with government spending on infrastructure expected to reach trillions of dollars over the next decade, HC2 expects this transaction to help drive long-term revenue growth in our infrastructure segment, ”added Wayne Barr, Jr., CEO of HC2.
New loan agreement from a syndicate led by UMB Bank, na provides DBM’s senior secured debt totaling $ 220 million, comprising a term loan of $ 110 million and a credit facility renewable for $ 110 million. The revolving credit facility will mature on May 31, 2024 and will bear initial interest at prime rate less 1.10%. The term loan will mature on May 31, 2026 and will bear interest at 3.25%. In addition to funding part of the Banker Steel acquisition, the term loan and revolving credit facility will be used to repay any outstanding amounts from DBM’s existing credit agreement with Wells Fargo Bank, the National Association and DBM’s existing loan to TCW Asset Management. Company. There is no prepayment premium. Any unused amount under the revolving credit facility will be available for general DBM purposes.
“Our new, more advantageous credit agreement significantly reduces DBM’s cost of capital and will provide us with continued liquidity and flexibility to operate efficiently,” noted Mike Hill, Chief Financial Officer of DBM.
HC2 Holdings, Inc. (NYSE: HCHC) has a portfolio of leading subsidiaries in infrastructure, life sciences and spectrum. HC2 is headquartered in New York, NY, and through its subsidiaries, employs over 4,300 people with the addition of Banker Steel to its portfolio.
About DBM Global
DBM Global is focused on delivering sustainable world-class value to its clients through a highly collaborative portfolio of companies that provide better designs, more efficient construction and superior asset management solutions. DBM Global offers integrated steel construction services from a single source and professional services that include design assistance, design-build, engineering, details, BIM coordination, modeling / details steel, fabrication, rebar details, advanced field assembly, project management, and advanced steel management systems. Major market segments include commerce, healthcare, convention centers, stadiums, games and hospitality, mixed use and retail, industry, public works, bridges, international transport and projects. The company, headquartered in Phoenix, Arizona, has operations in the United States, Australia, Canada, India, New Zealand, the Philippines, Singapore, Thailand and the United Kingdom.
About Banker Steel Company
Headquartered in Lynchburg, Va., Banker Steel provides structural steel and assembly services to the East Coast commercial construction market. The company also provides design support services and has had the privilege of fabricating steel for design-build projects such as One Vanderbilt and the Jacob K. Javits Convention Center expansion, both in New York, Washington’s award-winning Washington National Park. , DC and the Barclays Center in Brooklyn, New York. The Banker Steel family of companies (www.bankersteel.com) consists of 6 operating companies and approximately 1,500 employees with offices or factories in Florida, Georgia, New Jersey, New York, Texas, Virginia and Ontario, Canada.
Caution Regarding Forward-Looking Statements
This press release contains, and certain oral statements made by our representatives from time to time may contain, forward-looking statements regarding the purchase of Banker Steel by DBM Global and our expectations regarding revenue growth, levels of activity in a foreseeable future, planned public spending and creating value for shareholders, as well as those who can be identified by words such as “will”, “intention”, “expect”, “anticipate”, ” should ”,“ could ”and similar expressions, all of which involve risks, assumptions and uncertainties, many of which are beyond the control of the Company and are subject to change. All forward-looking statements speak only as of the date they were made, and except as required by law, HC2 assumes no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise. Actual results of HC2 could differ materially from those expressed or implied in forward-looking statements due to a variety of important factors, both positive and negative, which may be revised or supplemented in subsequent statements and reports filed with the Company. Securities and Exchange Commission (“SEC”), including in our reports on Forms 10-K, 10-Q and 8-K. These risks and other important factors discussed under “Risk Factors” in our more Recent Annual Report on Form 10-K filed with the SEC, and our other reports filed with the SEC could cause actual results to differ materially from those indicated by forward-looking statements made in this press release.
Paul Caminiti / Pam Greene / Luc Herbowy
Matt Chesler, CFA