Valmont Industries, Inc. Completes Redemption of 6.625% Senior Notes due 2020
Jul 9, 2018
OMAHA, Neb., July 9, 2018 /PRNewswire/ -- Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, announced today that it has completed the redemption of all $250.2 million of its outstanding 6.625% senior notes due April 20, 2020 (CUSIP: 920253AD3), pursuant to a previously announced notice of redemption delivered to noteholders on June 8, 2018.
The 2020 notes were redeemed at a make-whole redemption price equal to approximately $266.0 million plus approximately $3.6 million of accrued and unpaid interest on the notes from April 20, 2018 to, but excluding, the redemption date. The redemption will result in an after-tax charge to third quarter earnings of approximately $11.0 million, or $0.49 per diluted share.
The Company funded the redemption with net proceeds from an issuance of $200.0 million aggregate principal amount of its 5.00% senior notes due 2044, $55.0 million aggregate principal amount of its 5.25% senior notes due 2054, and available cash. The offering of the 2044 and 2054 notes closed on June 19, 2018.
Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment for large scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management's perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont's reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
SOURCE Valmont Industries, Inc.
For further information: Renee Campbell, 402-963-1057