Sterling Construction Company amended its existing credit agreement with its lending group, led by BMO Harris Bank, to modify various aspects of the agreement, including and most significantly:

• Reduces the current interest rate on the Credit Agreement borrowings by two percentage points.
• Lowers the prospective mandatory quarterly payments on the Credit Agreement from $12.5 million to $4.1 million.

All ten banks in the lending syndicate approved the improvements to the facility. There were no significant changes to covenants or other elements of the agreement as a result of the amendment.

“The favorable changes to our credit agreement are a direct reflection of our strong operational execution, financial results and significant deleveraging since entering the agreement in October 2019,” stated Joe Cutillo, Sterling’s Chief Executive Officer. “This amendment significantly enhances our prospective financial performance in that we expect our pre-tax interest expense to decline by approximately $1.6 million per quarter for the balance of 2021. Additionally, the lowering of our required mandatory quarterly payments will enhance our ability to invest in the growth of our business. We are pleased with the confidence expressed by our banking group with our strategic progress and appreciate their partnership as we strive to continue to drive growth in Sterling’s profitability, cash flow and shareholder value."