TSL Express Daily News

Valmont Industries, Inc. (NYSE:VMI), a $6.8 billion industrial company with a "GREAT" financial health rating according to InvestingPro, announced Thursday that it has entered into a Third Amended and Restated Credit Agreement with JPMorgan Chase (NYSE:JPM) Bank, N.A., as Administrative Agent, and a group of lenders. The agreement provides Valmont and its wholly owned subsidiaries, Valmont Industries Holland B.V. and Valmont Group Pty. Ltd., with a five-year, $800 million committed unsecured revolving credit facility. The company maintains strong liquidity with a current ratio of 2.26 and operates with a moderate debt-to-equity ratio of 0.53.

According to a press release statement, the new credit agreement amends and restates the company’s previous facility dated October 18, 2021. The maturity date has been extended from October 18, 2026, to July 10, 2030. The amended agreement retains substantially similar terms to the prior arrangement, with several key changes.

The uncommitted accordion feature, which allows for an increase in borrowings, was raised from $300 million to $400 million. A 10 basis point credit spread adjustment previously applied to SOFR-based loans was eliminated. The sustainability pricing adjustments that were previously linked to certain key performance indicators (KPIs) for interest rates and commitment fees have also been removed. However, the company now has the option to propose future sustainability pricing adjustments based on KPIs.

Additionally, the commitment fees charged on the average daily unused portion of the credit facility were reduced. Previously ranging from 10 to 25 basis points depending on the credit rating of Valmont’s senior, unsecured, long-term debt, these fees will now range from 9 to 20 basis points.

The information in this article is based on a press release statement included in a U.S. Securities and Exchange Commission filing. For deeper insights into Valmont Industries’ financial health and detailed analysis, including 8 additional ProTips and comprehensive metrics, check out the company’s Pro Research Report on InvestingPro, where expert analysis shows the company is currently trading near its Fair Value.

In other recent news, Valmont Industries reported its Q1 2025 earnings, revealing a slight miss in both earnings per share (EPS) and revenue forecasts. The EPS stood at $4.32, narrowly missing the forecast of $4.35, while revenue reached $969.3 million, falling short of the anticipated $976.04 million. Despite these misses, Fitch Ratings upgraded Valmont’s rating to ’BBB’ with a stable outlook, citing the company’s conservative financial strategy and improved operating profile. Additionally, Stifel analysts raised their price target for Valmont to $345, maintaining a Buy rating due to steady performance and effective tariff mitigation strategies. In a separate development, William Blair upgraded Valmont’s stock rating to Outperform, following reassurances from the company about the minimal impact of tariffs on earnings. Valmont also announced executive separation agreements with two former executives, reflecting the company’s ongoing corporate restructuring efforts. These recent developments highlight Valmont’s strategic initiatives and financial resilience amidst market challenges.

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