Martin Marietta Lines Up $1.5B Term Loan and Amends Revolver to Fund Lhoist Deal

summarizeSummary

Martin Marietta Materials entered into a $1.5 billion term loan and amended its $800 million revolver to fund the Lhoist North America acquisition, with relaxed leverage covenants post-close.

check_boxKey Events · Financing and Capital Events · MLM

• $1.5B Term Loan Secured

  A three-year senior unsecured term loan facility has been arranged with JPMorgan Chase as administrative agent. The facility will be drawn at the closing of the Lhoist North America acquisition to fund a portion of the cash consideration.

• Revolver Amendment Relaxes Leverage Covenant

  Amendment No. 1 to the existing $800 million revolving credit facility modifies the maximum leverage ratio to 4.75:1.00 for the first three quarters post-acquisition, stepping down to 4.25:1.00 for the next three quarters, and 3.75:1.00 thereafter.

• Financing for $13.5B Lhoist Acquisition

  The term loan and revolver amendment are directly tied to the previously announced $13.5 billion acquisition of Lhoist North America, a deal that will make Martin Marietta the leading U.S. aggregates producer.

• Term Loan Matures in Three Years

  The $1.5 billion term facility matures three years after funding and is not subject to amortization, with interest based on a ratings-based pricing grid.

auto_awesomeAnalysis · MLM · Energy & Transportation

To finance the $13.5 billion acquisition of Lhoist North America, Martin Marietta Materials has secured a $1.5 billion term loan and amended its existing $800 million revolving credit facility. The revolver amendment provides post-acquisition breathing room by relaxing the leverage ratio covenant, which steps down from 4.75x to 3.75x over time. The term loan is a three-year, unsecured facility that will be drawn at closing. This marks a significant step in funding the transformative acquisition, which will make Martin Marietta the leading U.S. aggregates producer.