LOS ANGELES--(BUSINESS WIRE)--Sep. 29, 2016--
AECOM (NYSE:ACM), a premier, fully integrated global infrastructure
firm, today announced it has completed an amendment of its existing
credit facilities. This transaction, which was facilitated by the
Company’s strong financial position and favorable bank market
conditions, reduces the Company’s borrowing cost and provides additional
flexibility to execute on its strategy.
The amended credit agreement, as approved by AECOM’s lenders, includes
the following benefits:
Reduces the borrowing rate on the revolving credit and Term Loan A
facilities by 50 basis points;
Lowers bank commitment and letter of credit fees;
Extends the maturity of the revolving credit and Term Loan A
facilities by two years to 2021; and
Provides the flexibility of a delayed draw term loan to redeem an
upcoming bond maturity.
AECOM anticipates its interest expense in fiscal 2017, excluding fees,
will be reduced by approximately $10 million as a result of the
“Having a strong balance sheet supported by consistent cash flow is a
key enabler of achieving our vision to become the world’s premier fully
integrated global infrastructure firm,” said Michael S. Burke, AECOM’s
chairman and chief executive officer.
“AECOM has delivered strong cash flow and debt reduction since closing
the URS transaction nearly two years ago, allowing us to
opportunistically access the market on very favorable terms,” added W.
Troy Rudd, AECOM’s chief financial officer.
In conjunction with the amended credit agreement, AECOM will file a Form
8-K with the Securities and Exchange Commission.
AECOM is built to deliver a better world. We design, build, finance and
operate infrastructure assets for governments, businesses and
organizations in more than 150 countries. As a fully integrated firm, we
connect knowledge and experience across our global network of experts to
help clients solve their most complex challenges. From high-performance
buildings and infrastructure, to resilient communities and environments,
to stable and secure nations, our work is transformative, differentiated
and vital. A Fortune 500 firm, AECOM had revenue of approximately
$18 billion during fiscal year 2015. See how we deliver what others can
only imagine at aecom.com and @AECOM.
Forward-Looking Statements: All statements in this press release
other than statements of historical fact are "forward-looking
statements" for purposes of federal and state securities laws, including
statements relating to future borrowing rates and bank fees, future
credit agreement expiration, future bond redemptions, future interest
expense reductions as well as future economic and industry conditions.
Actual results could differ materially from those projected or assumed
in any of our forward-looking statements. Important factors that could
cause actual results to differ materially from our forward-looking
statements are set forth in our quarterly report on Form 10-Q for the
fiscal quarter ended June 30, 2016, and our other reports filed with the
U.S. Securities and Exchange Commission. AECOM does not intend, and
undertakes no obligation, to update any forward-looking statements.
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President, Global External Communications
Vice President, Investor Relations