Synagro ups spread on $215 million term loan to Libor plus 525 bps

By Sara Rosenberg

New York, Aug. 19 - Synagro Technologies Inc. increased pricing on its $215 million seven-year term loan (B3/B+) to Libor plus 525 basis points from talk of Libor plus 450 bps to 475 bps, according to a market source.

In addition, the original issue discount was revised to 98 from 99, the source said.

As before, the term loan has a 1% Libor floor and 101 soft call protection for one year.

The company's $280 million credit facility also provides for a $65 million five-year revolver (B3).

Leverage and debt service covenants are included in the deal.

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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