Fitch Ratings assigned 'BBB' ratings to Vulcan Materials Company's proposed offerings of senior unsecured notes on November 19, 2024. These notes will rank pari passu with the company's existing senior unsecured debt, reflecting a stable credit profile.
The net proceeds from this debt issuance are earmarked for strategic financial maneuvers. Funds will be used to repay borrowings under a delayed draw term loan, which was utilized to finance the acquisition of Wake Stone Corporation. Additionally, proceeds will redeem existing 4.5% senior notes due in 2025 and support general corporate purposes, including liquidity for further acquisitions.
Fitch estimates Vulcan's EBITDA leverage will be approximately 2.5x at year-end 2024, with an expected decline to around 2.2x by year-end 2025, aligning with management's target range of 2.0x-2.5x. The company maintains a strong liquidity position, supported by $433.2 million in unrestricted cash and $1.5 billion available under its $1.6 billion unsecured revolving credit facility.
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