Orion Group Holdings Positions for Growth with Closing of $120 Million Refinancing Transaction

Rhea-AI Summary

Orion Group Holdings (NYSE: ORN) closed a new five-year $120 million senior credit facility with UMB Bank on Dec 29, 2025. The facility includes a $60M revolver, a $20M equipment term loan, and a $40M acquisition term loan, plus a $25M uncommitted accordion. It replaces an $88M agreement and matures in Dec 2030. Borrowings price at SOFR plus 2.5%–3.0%, a reduction of ~225 bps versus the prior credit. Proceeds will repay $23M outstanding and fund general corporate purposes to support Orion’s growth strategy.

Positive

• Credit facility increased from $88M to $120M
• Interest spread reduced by ~225 basis points
• Facility maturity extended to Dec 2030
• Includes $60M revolving line for liquidity

Negative

• Additional $25M accordion is uncommitted
• Borrowings tied to SOFR, exposing costs to rate volatility

News Market Reaction

-1.92%

1 alert

-1.92% News Effect

On the day this news was published, ORN declined 1.92%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

New Credit Facility: $120 million Revolving line: $60 million Equipment term loan: $20 million +5 more

8 metrics

New Credit Facility $120 million Total size of new five-year Senior Credit Facility with UMB Bank

Revolving line $60 million Revolving line of credit component of new facility

Equipment term loan $20 million Equipment term loan facility within new credit agreement

Acquisition term loan $40 million Acquisition term loan facility within new credit agreement

Accordion feature $25 million Uncommitted accordion capacity to fund future growth

Prior facility size $88 million Amount of previous credit agreement being refinanced

Interest spread SOFR + 2.5% to 3.0% Interest rate range under new Credit Facility

Rate reduction 225 basis points Reduction vs. prior credit agreement’s cost of capital

Market Reality Check

Price: $13.84 Vol: Volume 194,232 is below i...

normal vol

$13.84 Last Close

Volume Volume 194,232 is below its 20-day average of 239,582, suggesting no outsized positioning ahead of this refinancing news. normal

Technical Shares at $10.42 are trading above the $8.16 200-day MA, indicating an established upward trend before this announcement.

Peers on Argus

Peers showed mixed moves with some up (e.g., BBCP +0.57%, BWMN +0.64%) and other...

Peers showed mixed moves with some up (e.g., BBCP +0.57%, BWMN +0.64%) and others down (e.g., MTRX -1.26%, GLDD -1.84%, SLND -0.87%), indicating today’s setup was more stock-specific than a broad sector trend.

Historical Context

5 past events · Latest: Dec 08 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 08	Conference participation	Neutral	+2.4%	Management participation in Roth Capital investor event for one-on-one meetings.
Nov 06	Conference participation	Neutral	-6.5%	Announcement of participation in Craig-Hallum Alpha Select investor conference.
Oct 28	Earnings and guidance	Positive	-0.5%	Q3 2025 results with raised full-year revenue, EBITDA, and EPS guidance.
Oct 16	Earnings call notice	Neutral	-5.7%	Notification of Q3 2025 earnings release and conference call schedule.
Sep 29	Board appointment	Positive	-2.5%	Appointment of experienced industry executive Robert Ledford to Board.

Pattern Detected

Recent news has been mostly neutral-to-positive (conferences, board changes, guidance raise), but price reactions have been mixed, with earnings-related good news previously seeing a slight negative reaction.

Recent Company History

Over the last few months, Orion reported Q3 2025 results with $225.1M revenue, positive net income, and raised full-year guidance, yet the stock moved only slightly lower afterward. The company has been active in investor outreach through multiple conferences and strengthened governance by adding Robert Ledford to the Board, expanding it to eight directors. The refinancing announcement follows a period of improving earnings quality, higher backlog, and increased bonding capacity, and fits into a broader balance-sheet and growth-focused trajectory.

Market Pulse Summary

This announcement details a refinancing into a $120 million Senior Credit Facility maturing in Decem...

Analysis

This announcement details a refinancing into a $120 million Senior Credit Facility maturing in December 2030, replacing a prior $88 million agreement. The structure adds distinct buckets for revolving, equipment, and acquisition financing plus a $25 million accordion, and reduces interest by about 225 basis points with SOFR-based pricing. In context of earlier guidance increases and backlog strength, investors may monitor leverage, acquisition activity funded by the new facility, and subsequent earnings to gauge the impact on long-term performance.

Key Terms

senior credit facility, revolving line of credit, term loan facility, accordion, +2 more

6 terms

senior credit facility financial

"entered into a new, five-year $120 million Senior Credit Facility"

A senior credit facility is a large loan or revolving line of credit that a company borrows from banks or lenders and that has first claim on the company’s cash and assets if the business runs into financial trouble. Think of it as the “first in line” debt with stronger repayment priority and usually stricter rules, so investors watch it because its size, cost and covenants affect a company’s cash flow, risk profile and the value of equity and other creditors.

revolving line of credit financial

"comprised of (i) a $60 million revolving line of credit"

A revolving line of credit is a flexible borrowing arrangement that allows a person or business to access funds up to a set limit whenever needed, much like a prepaid card. As money is repaid, it becomes available to borrow again, making it a convenient way to manage cash flow or cover ongoing expenses. Investors pay attention to it because it reflects a company’s ability to access quick funds and manage financial flexibility.

term loan facility financial

"(ii) a $20 million equipment term loan facility, and (iii) a $40 million acquisition term loan facility"

A term loan facility is a type of loan provided by a lender that is repaid over a set period of time, usually with fixed payments. It functions like a large, upfront loan that a borrower agrees to pay back gradually, often used to fund major investments or projects. For investors, understanding a company's use of such loans helps assess its financial stability and risk level.

accordion financial

"includes an additional $25 million uncommitted accordion to fund future growth"

An accordion is a built‑in option in a financing agreement or corporate charter that lets a company expand or shrink the size of a loan, credit line, or authorized securities without starting a whole new approval process. Investors care because using the accordion can change how much debt a company carries or dilute existing shareholders when more shares are issued — think of it like expandable luggage that makes room when needed but can alter how your belongings are arranged.

secured overnight financing rate (sofr) financial

"bear interest at the Company’s option at the Secured Overnight Financing Rate (SOFR)"

A secured overnight financing rate (SOFR) is the interest rate on very short, one‑day loans that are backed by high‑quality collateral (like government bonds), so lenders face less risk. Investors care because SOFR is a widely used benchmark that sets the cost of borrowing and the pricing of loans, bonds and derivatives; think of it as a trusted yardstick for short‑term interest costs that influences returns and valuations across markets.

basis points financial

"representing a reduction of approximately 225 basis points compared to the prior credit agreement"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. Not financial advice.

HOUSTON, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Orion Group Holdings, Inc. (NYSE: ORN) (the “Company” or “Orion”), a leading specialty construction company, today announced that it has entered into a new, five-year $120 million Senior Credit Facility (the “Credit Facility”) with UMB Bank (“UMB”).

“We are pleased to announce this refinancing, a key milestone in the Company’s growth strategy. The new Credit Facility increases Orion’s financial flexibility with expanded liquidity and greater borrowing capacity at a lower overall cost of capital. We look forward to our partnership with UMB as we position the Company to execute on our strategic growth priorities,” said Travis Boone, President and Chief Executive Officer of Orion.

“UMB is honored to provide the Credit Facility to Orion that will help fuel its plans for future growth. Thriving businesses are essential to our communities, and we are thrilled to deliver the resources and access to capital to help them achieve their goals. I can’t wait to see where the Orion team goes in this next phase of their business,” said Michael Garner, Regional President for Texas and Oklahoma at UMB Bank.

The $120 million UMB Credit Facility matures in December 2030 and is comprised of (i) a $60 million revolving line of credit, (ii) a $20 million equipment term loan facility, and (iii) a $40 million acquisition term loan facility. The Credit Facility also includes an additional $25 million uncommitted accordion to fund future growth. This facility refinances and replaces the Company’s previous $88 million credit agreement, which was scheduled to mature in May 2028. Borrowings under the new facility bear interest at the Company’s option at the Secured Overnight Financing Rate (SOFR) plus 2.5% to 3.0%, as determined based on the Company’s consolidated leverage, representing a reduction of approximately 225 basis points compared to the prior credit agreement. Proceeds will be used to repay outstanding borrowings of $23 million under the Company’s prior facility and for general corporate purposes.

About Orion Group Holdings

Orion Group Holdings, Inc., a leading specialty construction company serving the infrastructure, industrial and building sectors, provides services both on and off the water in the continental United States, Alaska, Hawaii, Canada and the Caribbean Basin through its marine segment and its concrete segment. The Company’s marine segment provides construction and dredging services relating to marine transportation facility construction, marine pipeline construction, marine environmental structures, dredging of waterways, channels and ports, environmental dredging, design and specialty services. Its concrete segment provides turnkey concrete construction services including place and finish, site prep, layout, forming, and rebar placement for large commercial, structural and other associated business areas. The Company is headquartered in Houston, Texas with regional offices throughout its operating areas. The Company’s website is located at: https://www.oriongroupholdingsinc.com.

Forward Looking Statements

The matters discussed in this press release may constitute or include projections or other forward-looking statements within the meaning of the “safe harbor” provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, of which provisions the Company is availing itself. Certain forward-looking statements can be identified by the use of forward-looking terminology, such as 'believes', 'expects', 'may', 'will', 'could', 'should', 'seeks', 'approximately', 'intends', 'plans', 'estimates', or 'anticipates', or the negative thereof or other comparable terminology, or by discussions of strategy, plans, objectives, intentions, estimates, forecasts, guidance, outlook, assumptions, or goals. In particular, statements regarding our liquidity, borrowing capacity and flexibility, borrowing costs and use of proceeds, are forward-looking statements. Forward-looking statements involve a number of risks and uncertainties and the inclusion of forward-looking statements in this press release should not be regarded as a representation by the Company that the Company's plans, estimates, forecasts, goals, intentions, or objectives will be achieved or realized. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company assumes no obligation to update information contained in this press release whether as a result of new developments or otherwise, except as required by law.

Please refer to the Company's 2024 Annual Report on Form 10-K, filed on March 5, 2025 which is available on its website at www.oriongroupholdingsinc.com or at the SEC's website at www.sec.gov, and filings and press releases subsequent to such Annual Report on Form 10-K for additional and more detailed discussion of risk factors that could cause actual results to differ materially from our current expectations, estimates or forecasts.

Contact:

Margaret Boyce, IR
mboyce@orn.net
713.852.6500

Source: Orion Group Holdings, Inc.

FAQ

What did Orion (ORN) announce on Dec 29, 2025 about its financing?

Orion closed a five-year $120M senior credit facility with UMB Bank, replacing its prior $88M agreement.

How is Orion's new $120M credit facility structured (ORN)?

The facility comprises a $60M revolver, $20M equipment term loan, and $40M acquisition term loan, plus a $25M uncommitted accordion.

What interest rate will Orion (ORN) pay under the new facility?

Borrowings bear interest at SOFR plus 2.5%–3.0%, determined by Orion’s consolidated leverage.

How does the new Orion (ORN) facility affect maturity timing?

The new credit facility matures in December 2030, extending maturity from the prior May 2028 date.

How much of Orion’s prior debt will be repaid with the new financing (ORN)?

Proceeds will be used to repay $23M of outstanding borrowings under the prior facility.