HC2 Holdings Portfolio Company DBM Global Completes Acquisition of Banker Steel Family of Companies and Signs New Credit Agreement

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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 has 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 providing 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, 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 at $ 64 million. $ 1 million from the proceeds of the new term loan / revolving credit facility, $ 49.6. million seller’s notes, $ 6.3 million in assumed debt from Banker Steel and $ 25 million in cash received from HC2 in settlement of certain intercompany balances.

Banker Steel, which is now a wholly owned subsidiary of DBM, is headquartered in Lynchburg, Virginia, and provides structural steel construction and assembly services primarily for the East Coast commercial and industrial construction market. and the Southeast. Banker Steel consists of six operating companies: Banker Steel Co., LLC; NYC Constructors, LLC; Memco LLC; Derr & Isbell Construction LLC; Innovative design and engineering solutions; and Lynchburg Freight and Specialty LLC. Don Banker, CEO, and his management team will continue their key roles at Banker Steel.

“We are delighted to add an industry leader with a renowned track record and over $ 800 million in backlog 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 premier East Coast presence is a perfect complement. to DBM’s footprint primarily focused on the West Coast. ”

“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 it to take full advantage of a market poised for significant growth, ”said Avie Glazer, president of HC2.

“With an expected return to pre-pandemic activity levels throughout the remainder of 2021 and into 2022, coupled with government spending on infrastructure expected to reach trillions of dollars over the next decade, HC2 expects this transaction to contribute to long-term growth. revenue growth in our infrastructure segment, ”added Wayne Barr, Jr., president and CEO of HC2.

The new credit agreement of a syndicate led by UMB Bank, na provides for a senior secured debt of DBM 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 an interest rate of 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 on the existing credit agreement between DBM and Wells Fargo Bank, National Association and the loan. existing DBM with TCW Asset Management. Company. There is no prepayment premium. Any amount not drawn under the revolving credit facility will be available for general corporate purposes of DBM.

“Our new, more favorable credit agreement significantly reduces DBM’s cost of capital and will provide us with the liquidity and flexibility to operate efficiently,” said Mike Hill, Chief Financial Officer of DBM.

About HC2

HC2 Holdings, Inc. (NYSE: HCHC) has a leading portfolio of 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 offering 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 detailing, advanced field assembly, project management, and state-of-the-art steel management systems. Major market segments include commerce, healthcare, convention centers, stadiums, gaming and hospitality, mixed use and retail, industry, public works, bridges, transportation and international projects. The company, headquartered in Phoenix, Arizona, operates 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 construction and assembly services for 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 Extension, both in New York, the award winning Washington Nationals Park in Washington. , 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 enhancing shareholder value, 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 are made and, except as required by law, HC2 does not undertake 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 various important factors, positive and negative, which may be revised or supplemented in subsequent statements and reports filed with the 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 most recent Annual Report on Form 10-K filed with the SEC, and our other reports filed with the SEC could cause the results to be reported. actual differ materially from those indicated by the forward-looking statements made in this press release.

Media contact:ReevemarkPaul Caminiti / Pam Greene / Luc Herbowy[email protected](212) 433-4600

Investor contact: FNK IRMatt Chesler, CFA[email protected](212) 235-2691

Source: HC2 Holdings, Inc.



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