Synagro LBO credit facility to be led by Bank of America, Citigroup and Lehman

By Sara Rosenberg

New York, Jan. 29 - Synagro Technologies Inc. is planning on getting a new credit facility to help fund its buyout by The Carlyle Group, according to a market source.

Bank of America, Citigroup and Lehman are joint bookrunners on the deal.

The facility will consist of a revolver, a first-lien term loan and a second-lien term loan, with sizes unavailable at this time, the source said.

Timing on the deal is still to be determined, the source added.

According to a DEFA14A filed with the Securities and Exchange Commission Monday, the company has received financing commitments for $540 million, although whether that will all come in the form of a credit facility was unclear.

Carlyle is buying Synagro in a transaction valued at $772 million, including the assumption of $310 million in debt. Synagro shareholders will get $5.76 per share in cash.

The transaction is expected to close in the second quarter, subject to customary closing conditions, including the approval of Synagro's stockholders.

Synagro is a Houston-based recycler of biosolids and other organic residuals.

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