Construction Partners amends term loan, adds $300M in incremental debt

Construction Partners, Inc. (NASDAQ: ROAD) amended its Term Loan B Credit Agreement on June 18, 2026, refinancing existing term loans and adding $300.0 million in incremental term loans, according to a company statement.

The amendment, referred to as Amendment No. 1, refinances and replaces all outstanding term loans under the prior agreement to reduce applicable interest rate margins. The combined term loans mature on November 1, 2031 and are subject to quarterly amortization payments equal to 0.25% of the aggregate principal amount outstanding on the amendment's effective date.

The amendment introduces a two-tier margin structure. The current applicable margin, designated Level 1 Pricing, will be reduced by 0.25% per annum if the company's consolidated first lien net leverage ratio falls below 2.95-to-1.00. Level 1 Pricing will remain in effect until the first quarterly testing date on September 30, 2026.

A six-month repricing protection period was reset under the amendment, during which a prepayment premium of 1.00% applies to certain repricing transactions.

The amendment also modifies several negative covenants, including a new basket permitting stock repurchases of up to $50.0 million per fiscal year under any share repurchase plan, subject to certain conditions. It raises leverage ratio tests applicable to incremental debt capacity and the excess cash flow sweep by 0.25 to 1.00 in each instance.

Additional changes include raising the floor for netting unrestricted cash to $325.0 million for purposes of calculating the consolidated net leverage ratio, and permitting certain subsidiaries to be designated as immaterial and excluded from guarantee requirements.

Goldman Sachs Bank USA, BofA Securities, PNC Bank, TD Securities, Regions Capital Markets, and Royal Bank of Canada served as joint lead arrangers and bookrunners in connection with the amendment.

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