MRO Magazine

Sterling Construction Company, Inc. Announces Closing of Common Stock Offering


May 9, 2016
By Business Wire News

THE WOODLANDS, Texas

Sterling Construction Company, Inc. (Nasdaq GS:STRL) (the “Company” or “Sterling”) today announced the completion of the offering of 4,500,000 shares of common stock announced earlier and 675,000 shares of common stock to cover over-allotments pursuant to an option that was exercised by the underwriter prior to closing. The offering resulted in net proceeds to the Company of approximately $19.0 million.

The Company announced the pricing of the offering on May 3, 2016, at $4.00 per share to the public and proceeds of $3.77 per share to the Company after underwriting discounts.

Mr. Paul Varello, Sterling’s CEO, purchased 125,000 shares of common stock in this offering at the public offering price for an aggregate purchase price of approximately $500,000.

The $19.0 million of net proceeds from the offering are intended to be used for working capital, to repay indebtedness outstanding under the revolving loan portion of its equipment-based credit facility and for general corporate purposes.

The securities described above are being offered by the Company pursuant to a shelf registration statement which was filed with the Securities and Exchange Commission on April 4, 2014 and became effective on April 29, 2014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The completion of the offering is subject to customary closing conditions.

Copies of the final prospectus supplement and base prospectus relating to the offering can be obtained at the SEC’s website at http://www.sec.gov or from D.A. Davidson & Co. at 8 Third Street North, Great Falls, MT 59401 or by calling (800) 332-5915.

Sterling is a leading heavy civil construction company that specializes in the building and reconstruction of transportation and water infrastructure projects in Texas, Utah, Nevada, Colorado, Arizona, California, Hawaii, and other states where there are construction opportunities. Its transportation infrastructure projects include highways, roads, bridges, airfields and light rail. Its water infrastructure projects include water, wastewater and storm drainage systems.

This press release includes certain statements that fall within the definition of “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties, including overall economic and market conditions, our ability to successfully integrate acquired businesses and realize the anticipated benefits of those acquisitions, competitors’ and customers’ actions, and weather conditions, which could cause actual results to differ materially from those anticipated, including those risks identified in the Company’s filings with the Securities and Exchange Commission. Accordingly, such statements should be considered in light of these risks. Any prediction by the Company is only a statement of management’s belief at the time the prediction is made. There can be no assurance that any prediction once made will continue thereafter to reflect management’s belief, and the Company does not undertake to update publicly its predictions, whether as a result of new information, future events or otherwise.

Sterling Construction Company, Inc.
Jennifer Maxwell
Director of Investor Relations
281-951-3560

Investor Relations Counsel:
The Equity Group Inc.
Fred Buonocore 212-836-9607
Linda Latman 212-836-9609