Katerra Announces Recapitalization to Strengthen Balance Sheet and Position Business for Continued Growth

MENLO PARK, Calif., Dec. 30, 2020 /PRNewswire/ -- Katerra, a technology-enabled construction company, announced today that its shareholders have approved a recapitalization of the business that will enable Katerra to move forward with a financial foundation of renewed strength. With a focus on its core businesses, enhanced operational capabilities, and the infusion of new capital, Katerra is positioned to accelerate its path to profitability and continue its pursuit to transform the construction industry through innovation of process and technology.

The approved recapitalization will strengthen Katerra's balance sheet by eliminating significant debt and providing $200 million of new funding, principally from SoftBank Vision Fund 1. As Katerra exits 2020 with nearly $2 billion in revenue, this new funding enables Katerra to continue its focus on delivering best-in-class design and construction for customers, with the growth capital to keep progressing its highly differentiated, leading edge business lines, which include:

• Commercial release of Katerra's first building platform, a multifamily garden walk-up building designed as a configurable product and offering cost and schedule predictability for developer customers.
   
• Continued growth of the North American mass timber market, leveraging Katerra's world-class, cross-laminated timber manufacturing, design and installation capabilities.
   
• Growth of Katerra's national network of general contracting, renovations, and affiliated design partners, which will support deployment of Katerra's building platforms, as well as traditional construction projects.
   
• Advancement of Katerra's businesses in Saudi Arabia and India, both of which are supported by a robust backlog and established factory operations and are positioned to help address critical housing needs.

As a part of this new chapter, Katerra has strengthened its leadership team, drawing from highly industrialized sectors to bolster its capabilities in complex industrial orchestration. With an improved ability to manage large-scale systems of resources and materials, combined with Katerra's existing design and construction expertise, the company will be better positioned to execute its strategy moving forward.

"The decision to recapitalize follows a thorough review of options available to us to enhance our financial strength and ensure Katerra's ability to continue to pursue our goal of transforming the construction industry," said Paal Kibsgaard, Katerra's Chief Executive Officer. "Since taking over as CEO in July 2020, my team and I have been hard at work reducing costs and refocusing on our core businesses. We believe that this strategic and operational realignment, supported by SoftBank, is in the best interest of all stakeholders and will provide Katerra with the financial flexibility and resources needed to invest in areas that have the most promising growth trajectory. We appreciate SoftBank's continued support and confidence in the company and its prospects throughout this process."

Mr. Kibsgaard continued, "As we move forward, we remain firmly committed to our vision of transforming construction. I would like to thank our shareholders, customers, partners and suppliers for their support, as well as our employees for their continued focus and commitment throughout an unprecedented year."

About Katerra

Katerra is on a mission to transform construction through innovation of process and technology. As a new breed of company within industry, Katerra is powered through vertical integration and technology investment to provide a range of services and products to clients across the construction value chain. Founded in 2015, Katerra's demonstrated progress includes advanced manufacturing facilities, design and construction services, a large number of completed projects, and a growing product portfolio that includes whole-building platforms and sustainable mass timber. For more information, please visit www.katerra.com.

SOURCE Katerra

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