Stantec plans C$1.25 billion credit facility for MWH Global purchase

By Sara Rosenberg

New York, March 30 – Stantec Inc. has received a commitment for a C$1.25 billion credit facility to help fund its acquisition of MWH Global Inc., according to a 6-K filed with the Securities and Exchange Commission on Wednesday.

Canadian Imperial Bank of Commerce is the lead arranger and bookrunner on the deal.

The facility consists of an C$800 million revolver, under which around C$233 million will be drawn, and a C$450 million term loan.

Under the agreement, MWH Global, a Broomfield, Colo.-based engineering, consulting and construction management firm focused on water and natural resources for built infrastructure and the environment, is being bought for about $793 million.

Other funds for the transaction are expected to come from C$525 million public offering of subscription receipts which will convert to common shares upon closing of the acquisition.

Backing the equity financing is a commitment for a C$525 million bridge loan.

At closing, leverage is expected to be less than 3 times pro forma 2015 adjusted EBITDA.

Closing is expected in the second quarter, subject to customary conditions, including approval under the U.S. Hart-Scott-Rodino Anti-Trust Improvements Act and MWH shareholder approval.

Stantec is an Edmonton, Alta.-based professional services company.

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