New Enterprise Stone & Lime Co., Inc. Announces Pricing of its Senior Secured Notes Due 2028 and Senior Notes Due 2028

New Enterprise Stone & Lime Co., Inc. (“NESL” or the “Company”), a leading privately held, vertically integrated construction materials supplier, announced today the pricing of its previously announced offering of (i) $585.0 million aggregate principal amount (which constitutes a $10.0 million upsize from the previously announced amount) of its 5.250% Senior Secured Notes due 2028 (the "Secured Notes") at an issue price of par and (ii) $67.0 million of its Senior Unsecured Notes due 2028 (the “Unsecured Notes” and together with the Secured Notes, the “Notes”), which Unsecured Notes are an additional issuance of its 9.750% Senior Unsecured Notes that were issued on July 15, 2020, at an issue price of 108.500% of par for a yield to worst of 7.130%.

The Company intends to use the proceeds from the offering of the Notes, together with available cash on hand, to fund the previously announced tender offer commenced in connection with this offering of the Company’s outstanding 6.25% Senior Secured Notes due 2026 (the “2026 Notes”), the satisfaction and discharge of the Company’s obligations under the 2026 Notes, the purchase of Class B Non-Voting Stock from certain current stockholders, to pay related fees and expenses and for general corporate purposes.

The Notes are being offered in a private offering that is exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act and to certain non-U.S. persons outside the United States in offshore transactions in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements or a transaction not subject to the registration requirements of the Securities Act or any state securities laws.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful.

About New Enterprise Stone & Lime Co., Inc.

New Enterprise Stone & Lime Co., Inc. is a leading privately held, vertically integrated construction materials supplier and heavy/highway construction contractor in Pennsylvania and western New York. Our core businesses include: (i) construction materials (aggregate production (crushed stone and construction sand and gravel), hot mix asphalt production and ready mixed concrete production) and (ii) heavy/highway construction (heavy construction, hot mix asphalt paving and other site preparation services).

Forward-Looking Statements

Statements included herein may constitute forward looking statements. These statements are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in the Company’s reports. The Company undertakes no duty to update any forward looking statements made herein.

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