Dycom Industries, Inc. announced The Amended and Restated Credit Agreement, among other things, (i) establishes a $600.0 million 364 day senior secured bridge loan facility (the ? Bridge Facility?), (ii) extends the scheduled maturity date of the existing senior secured term loan A facility (the ? Term Loan A Facility?) and senior secured revolving credit facility (the ?
Revolving Credit Facility?) from January 15, 2029 to December 23, 2030, (iii) increases the commitments under the Revolving Credit Facility from $650.0 million to $800.0 million, (iv) increases the Term Loan A Facility from $440.0 million to $1,540 million and (v) adjusts certain other terms and basket capacities as described therein. The Revolving Credit Facility contains a $225.0 million sublimit for the issuance of letters of credit and a $50.0 million sublimit for swingline loans. Subject to certain conditions, the Amended and Restated Credit Agreement provides the Company the ability to enter into one or more incremental facilities, either by increasing the revolving commitments or term commitments thereunder and/or in the form of additional classes of term loans, in each case in an amount not to exceed the sum of (i) the greater of (A) $927.0 million and (B) 100% of consolidated EBITDA as of the most recently ended four fiscal quarter period, plus (B) additional amounts such that, after giving effect to such incremental facilities on a pro forma basis (assuming that the amount of the incremental commitments is fully drawn and funded), the consolidated senior secured net leverage ratio does not exceed 3.50:1.00.
Borrowings under the Amended and Restated Credit Agreement (other than swingline loans) will bear interest at a rate equal to either (a) term SOFR plus an applicable margin, or (b) the Administrative Agent?s base rate plus an applicable margin. The Administrative Agent?s base rate is described in the Amended and Restated Credit Agreement as the highest of (i) the federal funds rate plus 0.50%, (ii) the Administrative Agent?s prime rate, and (iii) term SOFR for a one-month period plus 1.00%. In the case of the Bridge Facility, the applicable margin as of the Closing Date for (x) term SOFR loans will be 1.75% and (y) base rate loans will be 0.75%, in each case, subject to a 0.25% increase on each 90-day anniversary of the Closing Date.
In the case of the Term Loan A Facility and Revolving Credit Facility, the applicable margin is based on the Company?s consolidated net leverage ratio. In addition, the Company will pay a fee for unused revolver balances based on the Company?s consolidated net leverage ratio. Until the delivery of a compliance certificate for the fiscal quarter ending August 1, 2026, (x) the applicable margin for term SOFR loans will be 1.75%, (y) the applicable margin for base rate loans will be 0.75% and (z) the commitment fee for unused revolver balances will be 0.35%.
Swingline loans will bear interest at a rate equal to the Administrative Agent?s base rate plus an applicable margin based upon the Company?s consolidated net leverage ratio. The Amended and Restated Credit Agreement?s financial covenants, measured as of the last day of each fiscal quarter, require (i) the Company to maintain a consolidated net leverage ratio of not greater than (A) until the last day of the first fiscal quarter ending after the second anniversary of the Closing Date, 4.50:1.00, and (B) thereafter, 4.00:1:00 (the ? Leverage Based Covenant?) and (ii) the Company to maintain a consolidated interest coverage ratio above 2.50:1.00.
The Amended and Restated Credit Agreement provides for certain increases to the Leverage Based Covenant on the terms and conditions specified therein in connection with permitted acquisitions.
Dycom Industries, Inc. is a provider of specialty contracting services. The Company supplies telecommunications providers with a portfolio of services, such as program management, planning, engineering and design, aerial, wireless construction, maintenance, and fulfillment services. It provides underground facility locating services for utilities, including telecommunications providers, and other construction and maintenance services for electric and gas utilities. It also supplies the expertise, labor, equipment, and tools necessary to provide services to its customers. It provides engineering services to telecommunications providers, such as planning and design of aerial, underground, and buried fiber optic, copper, and coaxial cable systems that extend from the telephone company hub location, or cable operator headend, to a consumers' home or businesses. It provides construction and installation services, including the placement and splicing of fiber, copper, and coaxial cables.
This super rating is the result of a weighted average of the rankings based on the following ratings: Global Valuation (Composite), EPS Revisions (4 months), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Investor
Investor
This super composite rating is the result of a weighted average of the rankings based on the following ratings: Fundamentals (Composite), Global Valuation (Composite), EPS Revisions (1 year), and Visibility (Composite). We recommend that you carefully review the associated descriptions.
Global
Global
This composite rating is the result of an average of the rankings based on the following ratings: Fundamentals (Composite), Valuation (Composite), Financial Estimates Revisions (Composite), Consensus (Composite), and Visibility (Composite). The company must be covered by at least 4 of these 5 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
Quality
Quality
This composite rating is the result of an average of the rankings based on the following ratings: Capital Efficiency (Composite), Quality of Financial Reporting (Composite), and Financial Health (Composite). The company must be covered by at least 2 of these 3 ratings for the calculation to be performed. We recommend that you carefully review the associated descriptions.
ESG MSCI
ESG MSCI
The MSCI ESG score assesses a company’s environmental, social, and governance practices relative to its industry peers. Companies are rated from CCC (laggard) to AAA (leader). This rating helps investors incorporate sustainability risks and opportunities into their investment decisions.