FREE SUBSCRIPTION Includes: The Advisor Daily eBlast + Exclusive Content + Professional Network Membership: JOIN NOW LOGIN
Skip Navigation LinksHome / News / Read News


Nations EF Provides $40MM Facility to Sterling Construction Company

June 01, 2015, 07:10 AM

Sterling Construction Company announced that the Company has closed a new financing effective May 29, 2015. The new $40 million credit facility with Nations Equipment Finance (“NEF”) will be secured by Sterling’s equipment.

A summary of the agreement is as follows:

  • Four-year agreement with Nations Equipment Finance of Norwalk, CT
  • Total debt financing of up to $40 million, comprised of a $20 million term loan and up to a $20 million revolving credit line
  • Availability will be determined quarterly based on a 65% advance rate of the appraised value of the collateral pledged
  • Initial interest rate of 12% with pricing criteria that could cause the rate to decrease or increase by two percentage points based on fixed charge coverage ratio performance
  • No financial covenants

Thomas Wright, Sterling’s Executive Vice President and Chief Financial Officer, stated, “We are pleased to have closed a new financing with Nations Equipment Finance to replace our previous credit facility. The new agreement carries no financial covenants, which gives us the flexibility to fund our ongoing operations without disruption for the foreseeable future.”

“Completing our new financing arrangement was a major step in our turnaround process,” stated Paul Varello, Sterling’s CEO. “This new credit facility will enable us to continue to implement the operational improvements that we have underway. By securing this financing we can now focus our attention entirely on bidding and executing effectively on attractive construction projects in order to achieve sustained profitability and drive increased shareholder value.”

Sterling is a leading heavy civil construction company that specializes in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Arizona, California, Hawaii, and other states where there are construction opportunities. Its transportation infrastructure projects include highways, roads, bridges and light rail and its water infrastructure projects include water, wastewater and storm drainage systems

Comments From Our Members

You must be an Equipment Finance Advisor member to post comments. Login or Join Now.