Concrete Pumping Holdings: Issuing Senior Secured Second Lien Notes for Strategic Growth

Concrete Pumping Holdings, Inc. (Nasdaq: BBCP), a leading provider of concrete pumping and waste management services in the U.S. and U.K., has announced its intention to offer $400.0 million aggregate principal amount of senior secured second lien notes due 2032 (the "Notes"). The Issuer, Brundage-Bone Concrete Pumping Holdings Inc., a wholly-owned subsidiary of the Company, will use the net proceeds from the offering to pay the redemption price for all of its outstanding 6.000% senior secured second lien notes due 2026, pay related fees and expenses, and use the remainder for general corporate purposes.



The Notes will be guaranteed on a senior secured basis by the Company, Concrete Pumping Intermediate Acquisition Corp., and each of the Issuer's domestic, wholly-owned subsidiaries that is a borrower under or a guarantor of the Company's existing senior secured asset-based revolving credit facility. The Company expects to use the net proceeds from the offering to pay the redemption price for all of its outstanding 6.000% senior secured second lien notes due 2026, pay related fees and expenses, and use the remainder for general corporate purposes.

The Notes will be offered and sold only to "qualified institutional buyers" in the United States pursuant to Rule 144A of the Securities Act of 1933, as amended (the "Securities Act"), or, outside the United States, to persons other than "U.S. persons" in compliance with Regulation S under the Securities Act. The Notes have not been, and will not be, registered under the Securities Act, and may not be offered or sold in the United States or to any U.S. persons absent registration under the Securities Act, or pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

The offering of senior secured second lien notes by Concrete Pumping Holdings presents both potential benefits and risks. On the one hand, the redemption of existing debt and the use of the remaining net proceeds for general corporate purposes can help the Company improve its capital structure, enhance its financial flexibility, and drive shareholder value. On the other hand, the offering is subject to market conditions, credit risk, interest rate risk, regulatory risk, and liquidity risk, which could impact the Company's financial position and the success of the offering.

In conclusion, the offering of senior secured second lien notes by Concrete Pumping Holdings is a strategic move that aligns with the Company's growth plan. By redeeming existing debt and using the remaining net proceeds for general corporate purposes, the Company can improve its capital structure, enhance its financial flexibility, and drive shareholder value. However, investors and the Company should carefully consider the potential benefits and risks associated with the offering, as well as the Company's overall financial position and strategic direction.