Archaea Energy unit upsizes secured facility to $1.1 billion

By William Gullotti

Buffalo, N.Y., June 30 – Archaea Energy Inc., via its Archaea Energy Operating LLC subsidiary, amended and upsized its credit agreement to $1.1 billion, according to a press release on Thursday.

The amended facility is composed of a $400 million senior secured term loan and a $700 million secured revolver, an increase of approximately $630 million from the original facility.

The amendments did not change the interest rates or the Sept. 15, 2026 maturity date.

The revolver’s interest rate is SOFR plus 275 basis points. Interest on the term loan is SOFR plus 325 bps.

Available capacity under the amended facilities is expected to be used to fund the company’s acquisition of NextGen Power Holdings LLC, which is expected to close on or after July 1, capital expenditures related to its Lightning Renewables joint venture with Republic Services Inc., other capital expenditures of the company’s development plan and for working capital and general corporate purposes.

As previously reported on June 6, Comerica Bank, through its renewable energy solutions group, is the administrative agent as well as a joint lead arranger and joint bookrunner with Citizens Bank, NA, Bank of Montreal, Chicago Branch and JPMorgan Chase Bank, NA.

Citigroup Global Markets, Inc., Citibank, NA and Citicorp North America, Inc. will act as co-syndication agents.

Based in Houston, Archaea is a renewable natural gas (RNG) developer that partners with landfill and farm owners to transform potential emissions sources into energy-producing RNG.

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