Simpson Thacher represented the initial purchasers, led by J.P. Morgan Securities LLC, in connection with a Rule 144A/Regulation S offering of $600 million aggregate principal amount of 6.875% Senior Notes due 2032 by Arcosa, Inc. (“Arcosa”).
Arcosa intends to use the net proceeds from the notes offering, together with borrowings under a Term Loan B facility, to fund the payment of the purchase price of its acquisition of the construction materials business of Stavola Holding Corporation (“Stavola”) and to use any remaining net proceeds to repay amounts outstanding under its revolving credit facility.
Arcosa is a provider of infrastructure-related products and solutions with leading brands serving construction, engineered structures and transportation markets in North America. Stavola is an aggregates-led and vertically integrated construction materials company primarily serving the New York-New Jersey Metropolitan Statistical Area (“MSA”) through its network of five hard rock natural aggregates quarries, twelve asphalt plants and three recycled aggregates sites. The acquisition expands the footprint of Arcosa’s construction materials business into the nation’s largest MSA.
The Simpson Thacher team included John O’Connell, Ben Pittenger, Jessica Ryan, Christopher Flynn and Khalia Williams (Capital Markets); Pasco Struhs (ECEB); Michael Isby (Environmental); Alysha Sekhon (IP); Jonathan Cantor and Kris Liu (Tax); and Andrew Pagliughi (Blue Sky).