Sterling Construction announced that it closed a new $40 million credit facility with Nations Equipment Finance, secured by Sterling’s equipment.

A summary of the agreement is as follows:

• Four-year agreement with Nations Equipment Finance of Norwalk, CT
• Total debt financing of up to $40 million, comprised of a $20 million term loan and up to a $20 million revolving credit line
• Availability will be determined quarterly based on a 65% advance rate of the appraised value of the collateral pledged
• Initial interest rate of 12% with pricing criteria that could cause the rate to decrease or increase by two percentage points based on fixed charge coverage ratio performance
• No financial covenants

Thomas Wright, Sterling’s Executive Vice President and Chief Financial Officer, stated, “We are pleased to have closed a new financing with Nations Equipment Finance to replace our previous credit facility. The new agreement carries no financial covenants, which gives us the flexibility to fund our ongoing operations without disruption for the foreseeable future.”

Sterling is a heavy civil construction company that specializes in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Arizona, California, Hawaii, and other states where there are construction opportunities. Its transportation infrastructure projects include highways, roads, bridges and light rail and its water infrastructure projects include water, wastewater and storm drainage systems.