Concrete Pumping Holdings announced upsizing of $425 million in senior secured notes to redeem existing debt and pay dividends.
Quiver AI Summary
Concrete Pumping Holdings, Inc. announced that its subsidiary, Brundage-Bone Concrete Pumping Holdings Inc., has upsized its private offering of senior secured second lien notes to $425 million, with an interest rate of 7.5%, set to close on January 31, 2025. The additional proceeds will be used to redeem existing senior secured second lien notes and to pay a special one-time dividend of $1.00 per share, amounting to approximately $53 million. The offering is limited to qualified institutional buyers under SEC regulations and is not registered under the Securities Act. Concrete Pumping Holdings is a leading provider of concrete pumping and waste management services in the U.S. and U.K., operating under established brands and maintaining a large fleet to ensure efficient service delivery.
Potential Positives
- The Company successfully upsized and priced its private offering of senior secured second lien notes from $400 million to $425 million, indicating strong investor interest and confidence.
- The Notes have a favorable interest rate of 7.500%, which may enhance the Company's financial positioning compared to existing debt.
- The Company plans to use net proceeds to redeem existing lower-interest debt from 2026, thereby potentially reducing overall interest expenses.
- A special one-time dividend of $1.00 per share will be paid to shareholders, totaling approximately $53 million, demonstrating a commitment to returning value to investors.
Potential Negatives
- The upsize of the debt issuance may indicate that the company is facing liquidity challenges, as they needed to increase their borrowings to manage existing obligations and fund a dividend.
- The offering is a private placement of high-yield debt with a significant interest rate of 7.500%, which could indicate higher perceived risk and borrowing costs for the company.
- The press release mentions forward-looking statements with substantial risk factors, suggesting uncertainty around the company’s future performance and strategic plans.
FAQ
What are the details of the recent private offering by Concrete Pumping Holdings?
Concrete Pumping Holdings announced a private offering of $425 million senior secured second lien notes due 2032, upsized by $25 million.
What is the interest rate for the new senior secured notes?
The notes will bear an annual interest rate of 7.500%.
When is the expected closing date for the offering?
The offering is expected to close on January 31, 2025, subject to customary conditions.
How will the proceeds from the notes be used?
The proceeds will redeem existing notes and fund a special one-time dividend of $1.00 per share.
Who can purchase the new notes offered by Concrete Pumping Holdings?
The notes will be offered only to qualified institutional buyers and outside the U.S. to non-U.S. persons.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$BBCP Hedge Fund Activity
We have seen 59 institutional investors add shares of $BBCP stock to their portfolio, and 38 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ALTRAVUE CAPITAL, LLC removed 2,446,966 shares (-100.0%) from their portfolio in Q3 2024
- MILL ROAD CAPITAL MANAGEMENT LLC added 526,379 shares (+96.8%) to their portfolio in Q3 2024
- HOTCHKIS & WILEY CAPITAL MANAGEMENT LLC added 506,530 shares (+inf%) to their portfolio in Q3 2024
- LEGATO CAPITAL MANAGEMENT LLC removed 491,866 shares (-100.0%) from their portfolio in Q3 2024
- NEW YORK STATE COMMON RETIREMENT FUND removed 447,172 shares (-99.4%) from their portfolio in Q3 2024
- TROLUCE CAPITAL ADVISORS LLC added 149,015 shares (+inf%) to their portfolio in Q3 2024
- CITADEL ADVISORS LLC added 142,726 shares (+140.5%) to their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
DENVER, Jan. 14, 2025 (GLOBE NEWSWIRE) -- Concrete Pumping Holdings, Inc. (Nasdaq: BBCP) (the “Company”) announced today that Brundage-Bone Concrete Pumping Holdings Inc. (the “Issuer”), a wholly-owned subsidiary of the Company, has successfully upsized and priced its private offering of $425.0 million aggregate principal amount of senior secured second lien notes due 2032 (the “Notes”), which was upsized by $25.0 million from the previously announced $400.0 million. The Notes will bear interest at an annual rate of 7.500%. The offering is expected to close on January 31, 2025, subject to customary closing conditions.
The Company intends to use the net proceeds of the Notes to pay the redemption price for all of the Company’s outstanding 6.000% senior secured second lien notes due 2026 (the “Existing 2026 Notes”) and pay related fees and expenses thereto. In addition, the remainder of the net proceeds of the Notes, together with cash on hand, will be used to pay a special one-time dividend of $1.00 per share of the common stock of the Company (approximately $53 million in the aggregate). Both of the redemption of the Existing 2026 Notes and the payment of the dividend will be subject to consummation of the offering.
This press release is neither an offer to sell nor a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes in any jurisdiction in which such offer, solicitation or sale is unlawful. Any offer of the securities will be made only by means of a private offering memorandum.
The Notes have not been, and will not be, registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered and sold only to “qualified institutional buyers” in the United States pursuant to Rule 144A of the Securities Act or, outside the United States, to persons other than “U.S. persons” in compliance with Regulation S under the Securities Act.
About Concrete Pumping Holdings
Concrete Pumping Holdings is a leading provider of concrete pumping services and concrete waste management services in the U.S. and U.K. markets based on fleet size, primarily operating under what we believe are the only established, national brands in both geographies – Brundage-Bone Concrete Pumping, Inc. for concrete pumping in the U.S., Camfaud Group Limited in the U.K., and Eco-Pan, Inc. for waste management services in both the U.S. and U.K. The Company’s large fleet of specialized pumping equipment and trained operators position it to deliver concrete placement solutions that facilitate substantial labor cost savings to customers, shorten concrete placement times, enhance worksite safety and improve construction quality. Highly complementary to its core concrete pumping service, Eco-Pan provides a full-service, cost-effective, regulatory-compliant solution to manage environmental issues caused by concrete washout. As of October 31, 2024, the Company provided concrete pumping services in the U.S. from a footprint of approximately 90 locations across 22 states, concrete pumping services in the U.K. from 35 locations, and route-based concrete waste management services from 20 locations in the U.S. and one shared location in the U.K.
Important Notice Regarding Forward-Looking Statements
This press release includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “expect,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believes,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements are based on management’s reasonable current assumptions, expectations and plans regarding the Company’s and the Issuer’s current or future results and future business and economic conditions more generally. Such forward-looking statements involve risks and uncertainties, including the Company’s ability to execute on its strategic growth plan and other factors disclosed in the risk factor sections of the Company’s latest Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the SEC, any of which may cause the actual results, levels of activity, performance or achievement of the Company or the Issuer to be materially different from any future results expressed or implied by such forward-looking statements, and there can be no assurance that actual results will not differ materially from management’s expectations. Therefore, you should not rely on any of these forward-looking statements as predictors of future events.
All forward-looking statements contained in this release are qualified in their entirety by this cautionary statement. Forward-looking statements speak only as of the date they are or were made, and the Company does not intend to update or otherwise revise the forward-looking statements to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, except as required by law.
Company Contact:
Iain Humphries
Chief Financial Officer
1-303-289-7947
Investor Relations:
Gateway Investor Relations
Cody Slach
1-949-574-3860
BBCP@gatewayir.com
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
