Key Highlights

  • Sterling Infrastructure (NASDAQ: STRL) increased its borrowing capacity by $1.05 billion through a new credit agreement.
  • The amended facility provides up to $1.5 billion in revolving loans, maturing in 2031.
  • Financial covenants allow a maximum net leverage ratio of 3.50 to 1.00, with flexibility for acquisitions.
  • As of July 2, 2026, $90 million was outstanding under the revolving loans.

Sterling Infrastructure (NASDAQ: STRL) has significantly expanded its financial flexibility with a new credit agreement, positioning itself for growth and strategic acquisitions. The deal increases borrowing capacity and extends maturity, reflecting confidence in the company’s long-term outlook.

Credit Facility Expansion

The amended credit agreement raises Sterling Infrastructure’s borrowing capacity by $1.05 billion.

Flexible Borrowing Terms

The agreement includes a $600 million sublimit for letters of credit and a $50 million swing line loan. It also introduces an incremental facility option, allowing additional term loans or debt issuance up to the greater of $500 million or 100% of the company’s EBITDA, subject to leverage conditions.

Leverage and Covenants

Financial covenants require Sterling Infrastructure to maintain a total net leverage ratio no greater than 3.50 to 1.00. However, the agreement permits a temporary increase to 4.00 to 1.00 for up to four quarters following a permitted acquisition exceeding $250 million, provided no default exists. The elimination of the 10-basis-point SOFR credit spread adjustment reduces borrowing costs.

Revolving loans remain repayable and reborrowable under the terms.

Strategic Use of Funds

Proceeds will support refinancing existing debt, funding capital projects, and pursuing acquisitions. The incremental facility offers additional flexibility for future growth initiatives without immediate drawdown requirements.

Security and Guarantees

The credit facility is secured by substantially all assets of Sterling Infrastructure and its subsidiary guarantors. Obligations remain guaranteed by the subsidiaries, ensuring lender protection while maintaining operational flexibility.

Maturity and Fees

The amended agreement matures on July 2, 2031, extending the company’s financial runway. Sterling Infrastructure will pay customary fees to lenders and the administrative agent, BMO Bank N.A. For services under the facility.

This article is for informational purposes only and does not constitute financial advice. Please consult a licensed financial adviser before making investment decisions.