Evoqua Water enters $350 million five-year revolving credit facility

By Marisa Wong

Los Angeles, April 7 – Evoqua Water Technologies Corp. refinanced its credit facilities for extended maturities, a lower weighted average cost of debt, increased liquidity and a reduction of debt levels by $100 million, according to a press release.

Evoqua’s wholly owned subsidiaries entered into a credit agreement on April 1 for an up to $350 million revolver maturing on April 1, 2026 and a previously announced $475 million term loan maturing on April 1, 2028.

The Evoqua subsidiaries also entered into a financing agreement for a receivables finance facility of up to $150 million maturing on April 1, 2024.

Net proceeds of these facilities, together with cash on hand, were used to repay all outstanding debt under the company’s previous credit facilities, which totaled about $815 million.

The reduction of roughly $340 million to the first-lien term loan outstanding under the previous credit facilities was funded by draws on the new revolver, the new receivables finance facility and $100 million of cash on hand.

In addition to extending the maturities of the previous term loan and revolver, Evoqua reduced the weighted average cash borrowing cost by about 0.5% from the Dec. 31 level. Liquidity also improved as a result of the overall financing, the company noted.

JP Morgan Chase Bank is the administrative agent and collateral agent under the credit agreement. PNC Bank acted as administrative agent under the receivables financing agreement.

Evoqua is a Pittsburgh-based provider of mission critical water treatment solutions.

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