Concrete Pumping Holdings plans to offer $400 million in senior secured notes to refinance existing debt and for corporate purposes.
Quiver AI Summary
Concrete Pumping Holdings, Inc. announced plans for its wholly-owned subsidiary, Brundage-Bone Concrete Pumping Holdings Inc., to offer $400 million in senior secured second lien notes due 2032. These notes will be guaranteed by the Company and its domestic subsidiaries. The proceeds will be used to redeem existing senior secured notes due 2026 and for general corporate purposes. The offering will be conducted privately and is not registered under the Securities Act, meaning it will only be available to qualified institutional buyers. The Company operates under prominent brands in the concrete pumping and waste management sectors across the U.S. and U.K.
Potential Positives
- The announcement of a $400 million private placement of senior secured second lien notes demonstrates the company's strong financial strategy aimed at restructuring existing debt, potentially improving its capital structure.
- This move could enhance liquidity by using the net proceeds to redeem outstanding senior secured notes due in 2026, reducing future interest expenses for the company.
- The backing of the notes by the company's wholly-owned subsidiaries underlines a commitment to secure financing, which could instill confidence among investors and stakeholders about the company's financial stability.
Potential Negatives
- The issuance of $400.0 million in senior secured second lien notes indicates a significant level of debt that could increase financial risk for the company.
- The necessity to redeem existing notes reflects potential strain on cash flow and could raise concerns among investors about the company's financial health.
- The private placement limits the ability of individual investors to participate, potentially reducing market interest and accessibility to the company's financial instruments.
FAQ
What are the details of the senior secured notes offering?
Concrete Pumping Holdings announced a private placement of $400 million in senior secured second lien notes due 2032.
Who will guarantee the senior secured notes?
The notes will be guaranteed by Concrete Pumping Holdings, Concrete Pumping Intermediate Acquisition Corp., and certain wholly-owned subsidiaries of the Issuer.
What is the purpose of the notes' proceeds?
Proceeds from the notes will be used to redeem existing notes, pay related fees, and for general corporate purposes.
Who can purchase the senior secured notes?
The notes will be offered only to qualified institutional buyers in the U.S. and to non-U.S. persons outside the U.S.
Is this offering registered under the Securities Act?
No, the notes have not been and will not be registered under the Securities Act or state securities laws.
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. 13, 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, intends to offer, on a private placement basis, $400.0 million aggregate principal amount of senior secured second lien notes due 2032 (the “Notes”). The Notes will be guaranteed on a senior secured basis by the Company, Concrete Pumping Intermediate Acquisition Corp., and each of the Issuer’s domestic, wholly-owned subsidiaries that is a borrower under or a guarantor of the Company’s existing senior secured asset-based revolving credit facility.
The Company intends to use the net proceeds of the Notes to pay the redemption price for all of Company’s outstanding 6.000% senior secured second lien notes due 2026, to pay related fees and expenses thereto, and the remainder for general corporate purposes.
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.
