OMAHA, Neb., June 11, 2018 /PRNewswire/ -- Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, announced today that it will redeem all $250.2 million of its outstanding 6.625% senior notes due April 20, 2020 (CUSIP: 920253AD3) on July 9, 2018. The Company will fund the redemption with net proceeds from an issuance of $200 million aggregate principal amount of its 5.00% senior notes due 2044, $55 million aggregate principal amount of its 5.25% senior notes due 2054, and available cash. The offering of the 2044 and 2054 notes was completed on June 8, 2018 and is expected to close on June 19, 2018, subject to customary closing conditions.
The 2020 notes will be redeemed at a redemption price equal to the greater of (a) 100% of the principal amount of the notes to be redeemed or (b) the sum of the present values of the remaining scheduled payments of principal and interest on the notes (not including any portion of those payments of interest accrued to the redemption date) from the redemption date to the maturity date of the notes. In each case, the notes will be discounted to the redemption date on a semi-annual basis at the Adjusted Treasury Rate (as defined in the notes) plus 45 basis points, plus accrued and unpaid interest on the notes from April 20, 2018 to, but excluding, the redemption date.
The redemption price for the 2020 notes will be calculated in accordance with the terms of the notes on the third Business Day (as defined in the notes) preceding the redemption date.
Valmont is a global leader, designing and manufacturing engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its irrigation equipment for large scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management's perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont's control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont's actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, risk factors described from time to time in Valmont's reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
SOURCE Valmont Industries, Inc.