Synagro talks $280 million credit facility at Libor plus 450-475 bps

By Sara Rosenberg

New York, July 25 - Synagro Technologies Inc. launched on Thursday its $280 million credit facility with price talk of Libor plus 450 basis points to 475 bps and an original issue discount of 99, according to a market source.

The facility consists of a $65 million five-year revolver and a $215 million seven-year term loan.

The term loan has a 1% Libor floor and 101 soft call protection for one year, the source said. The revolver has no floor.

Leverage and debt service covenants are included in the deal.

Commitments are due on Aug. 7, the source added.

RBC Capital Markets is the lead bank on the deal.

Proceeds will be used to help fund the buyout of the company by EQT Infrastructure II, which will be done as part of Synagro's plan of reorganization under its bankruptcy case.

On April 24, the company initiated its Chapter 11 restructuring in order to complete the sale and refinance its debt.

Synagro is a Houston-based recycler of biosolids and other organic residuals. The Chapter 11 case number is 13-11041.

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