Montrose enters $300 million two-tranche sustainability-linked credit agreement

By Wendy Van Sickle

Columbus, Ohio, April 28 – Montrose Environmental Group, Inc. entered into a new sustainability-linked credit agreement, according to a news release.

The credit agreement provides for a $175 million term loan and a $125 million revolver.

The company used net proceeds from the term loan and $42 million in borrowings under the revolver to repay all of its $175 million of outstanding borrowings under its former term loan and former revolver and related fees and expenses.

Borrowings under the new credit facility bear interest at a rate of Libor plus a spread of 150 basis points to 250 bps, based on the company’s net leverage ratio. The initial spread is 200 bps, a reduction of 55 bps from the prior credit facility.

Additionally, Montrose will receive up to a 5 bps pricing adjustment based on its performance against certain sustainability and ESG related objectives under the agreement.

The agreement establishes benchmarks in four key areas, the first of which pertains to diversity and inclusion. The three other benchmarks are directly related to the company’s environmental focus serving customers, including liters of water treated, volume of methane leaks detected and the amount of low-carbon intensity energy generated from waste.

Bank of the West is the administrative agent and a joint lead arranger, along with Capital One, NA and BofA Securities, Inc.

The environmental services company focused on supporting commercial and government organizations is based in Irvine, Calif.

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