BIRMINGHAM, Ala., Oct. 14, 2011 /PRNewswire/ -- Vulcan Materials Company (NYSE: VMC) today announced that it has entered into an agreement with SunTrust Robinson Humphrey, Inc. and SunTrust Bank, and Wells Fargo Bank, N.A. whereby SunTrust and Wells Fargo have agreed to provide, on an underwritten basis (subject to standard closing conditions), a 5-year $500 million revolving credit facility to replace Vulcan's existing revolving credit facility that matures on November 16, 2012. The new revolving credit facility is structured as an asset-based lending facility and is projected to close on November 15, 2011. SunTrust Bank will act as Administrative Agent and Collateral Agent on the credit facility.
Separately, Vulcan's Board of Directors at a regularly scheduled meeting held today declared a quarterly dividend of one cent per share on its common stock payable December 9, 2011, to shareholders of record on November 23, 2011. This dividend compares with the 25 cents per share quarterly dividend paid September 10, 2011.
Donald M. James, Chairman and Chief Executive Officer, said, "We are pleased to announce the new revolving credit facility. This facility provides a stable source of financing for the next five years and, along with the $1.1 billion bond refinancing we closed earlier this summer, provides ample liquidity and operational flexibility. Additionally, while we recognize the importance of the dividend to our shareholders, we believe today's action is prudent given the effects of the recession over the past three years on construction and our end markets. The dividend reduction will improve available cash by approximately $124 million annually. We have recently completed two small acquisition and divestiture transactions that will improve our EBITDA and provide over $50 million in cash. Along with the refinancing, these actions are among many initiatives we have undertaken to strengthen our balance sheet, reduce costs and provide significantly more flexibility to respond to opportunities as well as to continuing macroeconomic challenges."
Vulcan Materials Company, a member of the S&P 500 index, is the nation's foremost producer of construction aggregates and a major producer of other construction materials. For additional information about Vulcan Materials Company, see www.vulcanmaterials.com.
Certain matters discussed in this release, including expectations regarding future performance, contain forward-looking statements that are subject to assumptions, risks and uncertainties that could cause actual results to differ materially from those projected. These assumptions, risks and uncertainties include, but are not limited to, those associated with general economic and business conditions; the timing and amount of federal, state and local funding for infrastructure; the lack of a multi-year federal highway funding bill with an automatic funding mechanism; the reluctance of state departments of transportation to undertake highway projects without a reliable method of federal funding; the impact of the global economic recession on our business and financial condition and access to capital markets; changes in the level of spending for private residential and nonresidential construction; the highly competitive nature of the construction materials industry; the impact of future regulatory or legislative actions; the outcome of pending legal proceedings; pricing of our products; weather and other natural phenomena; energy costs; costs of hydrocarbon-based raw materials; healthcare costs; the amount of long-term debt and interest expense incurred by the Company; changes in interest rates; the impact of our below investment grade debt rating on our cost of capital; volatility in pension plan asset values which may require cash contributions to the pension plans; the impact of environmental clean-up costs and other liabilities relating to previously divested businesses; the Company's ability to secure and permit aggregates reserves in strategically located areas; the Company's ability to manage and successfully integrate acquisitions; the potential impact of future legislation or regulations relating to climate change or greenhouse gas emissions or the definition of minerals; and other assumptions, risks and uncertainties detailed from time to time in the Company's SEC reports, including the report on Form 10-K for the year. Forward-looking statements speak only as of the date hereof, and Vulcan assumes no obligation to publicly update such statements.
SOURCE Vulcan Materials Company