Advanced Drainage to launch $1.05 billion credit facilities on Monday

By Sara Rosenberg

New York, Sept. 6 – Advanced Drainage Systems Inc. is scheduled to hold a bank meeting at 9:30 a.m. ET in New York on Monday to launch $1.05 billion of credit facilities, according to a market source.

Barclays, Morgan Stanley Senior Funding Inc., BofA Securities Inc., PNC Capital Markets, BMO Capital Markets, Fifth Third Bank and HSBC Securities (USA) Inc. are the joint lead arrangers on the deal.

The facilities consist of a $350 million five-year revolver and a $700 million seven-year first-lien term loan, the source said.

Proceeds will be used to support the acquisition of Infiltrator Water Technologies Ultimate Holdings Inc. and to pay related fees and expenses.

Other funds for the transaction will come from an upcoming senior notes offering and a recently completed equity offering.

Infiltrator Water, an Old Saybrook, Conn.-based on-site septic wastewater treatment company, was bought on July 31 for about $1.08 billion from Ontario Teachers’ Pension Plan and other stockholders.

Advanced Drainage is a Hilliard, Ohio-based manufacturer of water management products and drainage solutions for use in the construction and infrastructure marketplace.

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