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AEGN - Aegion News Story

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Mid Cap
Market Cap £563.5m
Enterprise Value £675.1m
Revenue £790.6m
Position in Universe 3034th / 6713

Aegion Corporation Secures Successful Credit Facility Amendment, Resulting in Projected 2021 Annual Interest Savings of Nearly $4 Million

Mon 30th November, 2020 3:39pm
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ST. LOUIS, Nov. 30, 2020 (GLOBE NEWSWIRE) -- Aegion Corporation
(NASDAQ:AEGN) today announced the successful completion of an amendment to its
senior secured credit facility, resulting in significant annual interest
savings while continuing to ensure ample liquidity.

In April 2020, the Company completed a credit facility amendment that provided
increased borrowing capacity and expanded covenant flexibility in exchange for
higher rates, as a proactive liquidity measure to weather the significant
uncertainty at the onset of the COVID-19 pandemic. Based on the Company’s
strong performance in recent months as well as management’s confidence in
future cash flows, the new amendment secures more favorable rates while still
ensuring flexibility to manage through downside risks.

The amendment is projected to result in nearly $4 million in interest savings
in 2021 on expected term loan borrowings, compared to the previous amendment,
based on the Company’s projected consolidated leverage ratios. Under the
revised covenant structure, the Company projects to have significant potential
borrowing capacity on the revolving line of credit in 2021.

Among key components of the amendment:
* The credit facility consists of a $175 million revolving line of credit and
a $228 million term loan facility, each with a maturity date in February 2023,
which remain unchanged.
* Interest is charged at the British Bankers’ Association LIBOR rate plus an
applicable rate ranging from 1.25% to 3.25% depending on the Company’s
consolidated leverage ratio. The amended facility also provides a 25
basis-point floor for the base LIBOR rate, a reduction of 50 basis points from
the April amendment.
* Revised financial covenants include: 1) a consolidated financial leverage
ratio not to exceed 3.50 to 1.00 at December 31, 2020, 3.25 to 1.00 at March
31, 2021, and not more than 3.00 to 1.00 beginning with the quarter ending
June 30, 2021; and 2) a consolidated fixed charge coverage ratio of not less
than 1.15 to 1.00 at December 31, 2020, increasing to 1.20 to 1.00 at March
31, 2021 and 1.25 to 1.00 beginning with the quarter ending June 30, 2021.
Charles R. Gordon, Aegion’s President and CEO, said, “This successful
amendment is a testament to Aegion’s strong earnings and cash flow
generation through the global pandemic – with projections for continued
momentum going forward. The longstanding relationships with our lending group
allowed us to achieve a more-optimal rate structure, while maintaining
flexibility to manage the business. We remain very pleased with our balance
sheet and liquidity position – the strongest in the last several years –
and believe they will be enablers for earnings growth over the next 12 to 24

About Aegion Corporation (NASDAQ: AEGN)
Aegion combines innovative technologies with market-leading expertise to
maintain, rehabilitate and strengthen infrastructure around the world. Since
1971, the Company has played a pioneering role in finding transformational
solutions to rehabilitate aging infrastructure, primarily pipelines in the
wastewater, water, energy, mining and refining industries. Aegion also
maintains the efficient operation of refineries and other industrial
facilities. Aegion is committed to Stronger. Safer. Infrastructure.(®)

More information about Aegion can be found at

Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe
harbor” for forward-looking statements. Aegion’s forward-looking
statements in this news release represent its beliefs or expectations about
future events or financial performance. These forward-looking statements are
based on information currently available to Aegion and on management’s
beliefs, assumptions, estimates or projections and are not guarantees of
future events or results. When used in this document, the words
“anticipate,” “estimate,” “believe,” “plan,” “intend,”
“may,” “will” and similar expressions are intended to identify
forward-looking statements, but are not the exclusive means of identifying
such statements. Such statements are subject to known and unknown risks,
uncertainties and assumptions, including those referred to in the “Risk
Factors” section of Aegion’s Annual Report on Form 10-K for the year
ended December 31, 2019, filed with the Securities and Exchange
Commission on March 2, 2020, and in subsequently filed documents, and, in
particular, the impact of the current COVID-19 virus outbreak and the evolving
response thereto. In light of these risks, uncertainties and assumptions, the
forward-looking events may not occur. In addition, Aegion’s actual results
may vary materially from those anticipated, estimated, suggested or projected.
Except as required by law, Aegion does not assume a duty to update
forward-looking statements, whether as a result of new information, future
events or otherwise. Investors should, however, review additional disclosures
made by Aegion from time to time in Aegion’s filings with the Securities
and Exchange Commission. Please use caution and do not place reliance on
forward-looking statements. All forward-looking statements made by Aegion in
this news release are qualified by these cautionary statements.

Aegion(®) and the Aegion(®) logo are the registered trademarks of Aegion
Corporation and its affiliates.

For more information, contact:
Katie Cason
Senior Vice President, Strategy and Communications
636-530-8000 |


GlobeNewswire, Inc. 2020
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