Orion Group Positions for Growth with New $120 Million Refinancing Deal

HOUSTON, TX – December 29, 2025 – Orion Group Holdings, Inc. (NYSE: ORN), a prominent specialty construction company, has successfully closed a significant refinancing transaction, securing a new five-year, $120 million Senior Credit Facility with UMB Bank. The move is a cornerstone of the company's long-term growth strategy, designed to enhance financial flexibility, increase liquidity, and lower its overall cost of capital as it prepares for a new phase of expansion.

The new agreement, announced today, replaces a prior $88 million credit facility that was set to mature in May 2028. By proactively restructuring its debt, Orion not only extends its financial runway but also substantially increases its borrowing power, positioning the firm to capitalize on emerging opportunities in the infrastructure, industrial, and building sectors.

A Fortified Financial Structure

The $120 million credit facility, which matures in December 2030, is meticulously structured to support various aspects of Orion's operations and strategic ambitions. It is composed of three primary components: a $60 million revolving line of credit for managing working capital and general corporate needs, a $20 million equipment term loan to modernize and expand its fleet, and a dedicated $40 million acquisition term loan facility.

This allocation clearly signals the company's intentions. The revolving credit line provides a larger cushion for day-to-day operations, while the equipment loan ensures its marine and concrete segments remain competitive with state-of-the-art machinery. Most notably, the $40 million earmarked specifically for acquisitions provides Orion with dedicated capital to pursue strategic buyouts, allowing the company to expand its geographic footprint or add complementary service lines without needing to seek separate financing for each deal.

Furthermore, the facility includes a $25 million uncommitted accordion feature. This option gives Orion the ability to increase the credit line in the future, providing an additional layer of financial agility to fund larger projects or seize unexpected growth opportunities as they arise.

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

The Strategic Advantage of Lower Capital Costs

A critical element of the new deal is the significant reduction in borrowing costs. Loans under the new facility will bear interest at the Secured Overnight Financing Rate (SOFR) plus a margin of 2.5% to 3.0%, depending on the company's leverage ratio. This represents a substantial improvement, reducing the interest rate spread by approximately 225 basis points, or 2.25 percentage points, compared to the previous agreement.

This lower cost of capital has immediate and long-term benefits. In the short term, it reduces interest expenses, directly improving the company's bottom line. Proceeds from the new facility will be used to pay down the $23 million outstanding on the previous credit line, immediately transitioning the company to the more favorable interest terms.

Long-term, the reduced financing cost enhances the financial viability of future projects and acquisitions. It allows Orion to bid more competitively on large-scale infrastructure contracts and makes potential acquisition targets more financially attractive. This newfound efficiency frees up capital that can be reinvested into the business, whether in research and development, talent acquisition, or further operational improvements. This strategic financial management is crucial in the competitive specialty construction market, where margins can be tight and the ability to manage costs effectively is a key differentiator.

Primed for Expansion in Core Markets

With a dedicated acquisition fund and enhanced liquidity, Orion is clearly primed for expansion. The company operates through two primary segments—marine and concrete—serving a diverse client base across the continental United States, Alaska, Hawaii, Canada, and the Caribbean Basin.

The marine segment is a leader in marine transportation facility construction, pipeline installation, environmental structures, and dredging of waterways and ports. The new capital could fuel its involvement in port modernization projects, offshore wind infrastructure support, or coastal resiliency initiatives, all areas of anticipated growth.

Simultaneously, the concrete segment provides turnkey services for large commercial and structural projects. The strengthened balance sheet positions this division to take on larger, more complex builds in the commercial real estate and industrial sectors. The $40 million acquisition facility could be used to acquire smaller, regional competitors to quickly gain market share or to purchase companies with specialized capabilities that complement Orion's existing portfolio.

The partnership with UMB Bank is seen as a vote of confidence in Orion's vision and operational capabilities. Michael Garner, Regional President for Texas and Oklahoma at UMB Bank, expressed enthusiasm for the collaboration. “UMB is honored to provide the Credit Facility to Orion that will help fuel its plans for future growth,” he stated. “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.”

This sentiment underscores a partnership that goes beyond a simple lending agreement, suggesting a collaborative approach to facilitating Orion's strategic objectives. As Boone concluded, “We look forward to our partnership with UMB as we position the Company to execute on our strategic growth priorities.” For Orion Group Holdings, this refinancing is not just a balance sheet adjustment; it is a strategic repositioning that unlocks the door to a new chapter of growth and market leadership.