Advanced Drainage enters five-year, $550 million restated revolver

By Wendy Van Sickle

Columbus, Ohio, June 28 – Advanced Drainage Systems, Inc. entered into a second amended and restated credit agreement providing for a five-year $550 million revolving credit facility on June 22, according to an 8-K filing with the Securities and Exchange Commission.

The company may borrow up to $150 million of additional revolving or term loans under the credit agreement.

PNC Capital Markets LLC, Citizens Bank, NA and Fifth Third Bank are the joint bookrunners and joint lead arrangers. PNC is the administrative agent. Citizens and Fifth Third are the co-syndication agents. Bank of America, NA, JPMorgan Chase Bank, NA and BMO Harris Bank NA are the documentation agents.

Borrowings bear interest at Libor plus a margin ranging from 112.5 basis points to 212.5 bps, and the commitment fee ranges from 15 bps to 35 bps, both depending on the leverage ratio.

The credit facility expires on June 22, 2022.

The agreement amends and restates the company’s amended and restated credit agreement dated June 12, 2013.

Proceeds will be used for general corporate purposes, including repurchases of stock, repayments of existing debt and short-term borrowings, working capital requirements, capital expenditures and acquisitions.

Based in Hilliard, Ohio, Advanced Drainage makes corrugated high-density polyethylene pipe and related products.

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