- Extends maturities
- Lowers weighted average cost of debt
- Increases liquidity
- Reduces debt levels by $100 million
Evoqua Water Technologies Corp. (NYSE: AQUA), an industry leader in mission-critical water treatment solutions, today announced the refinancing of the company’s credit facilities on April 1, 2021.
Wholly-owned subsidiaries of the company entered into a credit agreement, which provides for a $475 million term loan maturing on April 1, 2028 and a revolving credit facility of up to $350 million maturing on April 1, 2026, and a receivables financing agreement, which provides for a receivables finance facility of up to $150 million maturing on April 1, 2024. The net proceeds of these facilities, together with cash on hand, was used to repay all outstanding indebtedness under the company’s previous credit facilities, in an aggregate principal amount of approximately $815 million. The reduction of approximately $340 million to the first lien term loan outstanding under the previous credit facilities was funded by draws on the new revolving credit facility, the new receivables finance facility and $100 million of cash on hand.
In addition to extending the maturities of the previous term loan and revolver, Evoqua reduced the weighted average cash borrowing cost by approximately 0.50% from the December 31, 2020 level. Liquidity also improved as a result of the overall financing.
JP Morgan Chase Bank serves as the administrative agent and collateral agent under the credit agreement. PNC Bank serves as the administrative agent under the receivables financing agreement.
Mr. Ron Keating, CEO commented, “We are very pleased to have the new credit facilities in place which provides attractive market rates and extended maturities. This new structure allowed us to reduce total debt while increasing liquidity and provides flexibility for continued investments in our organic and inorganic growth strategies. We appreciate the continued support from the high-quality financial institutions who participated in the underwriting.”
About Evoqua Water Technologies
Evoqua Water Technologies is a leading provider of mission-critical water and wastewater treatment solutions, offering a broad portfolio of products, services and expertise to support industrial, municipal and recreational customers who value water. Evoqua has worked to protect water, the environment and its employees for more than 100 years, earning a reputation for quality, safety and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, the company operates in more than 160 locations across ten countries. Serving more than 38,000 customers and 200,000 installations worldwide, our employees are united by a common purpose: Transforming Water. Enriching Life.