U.S. Concrete frees up $5M, extends April 1 payment, as it works to fix debt problems
By APFriday, February 19, 2010
U.S. Concrete frees up $5M as it works to fix debt
HOUSTON — U.S. Concrete Inc. said on Friday that it will be looking for ways to restructure its finances, and said it got a waiver allowing it to skip an April 1 interest payment until April 30.
The company also said the lender on its senior credit facility agreed to temporarily lower a trigger on its loan from $25 million to $20 million, in effect freeing up $5 million, the company said.
The company said it has hired Lazard Freres & Co. and AlixPartners as financial advisers, and Kirkland & Ellis LLP as its legal adviser, to help it evaluate “potential alternatives to strengthen its balance sheet.”
Those alternatives include addressing its 8.375 percent senior subordinated notes due April 1, 2014, the company said.
“We believe that engaging in discussions with our bondholders to improve our capital structure and provide financial flexibility is in the best interest of the Company and its constituents,” said President and CEO Michael W. Harlan.
He said the company continues “to face economic headwinds which, combined with the recent inclement weather we have experienced in each of our markets, has placed added pressure on our liquidity.”
U.S. Concrete shares rose 2 cents to close at 72 cents. The announcement was made just before markets closed; its shares were unchanged in late trading.
