Hudson Technologies, a provider of innovative and sustainable refrigerant products and services to the heating, ventilation, air conditioning and refrigeration industry – and one of the nation’s largest refrigerant reclaimers, entered into a $85 million term loan agreement with TCW Asset Management. In addition, Hudson has amended its existing revolving credit facility to increase the overall facility to $90 million, with TCW participating in a first-in last-out (FILO) loan of $15 million, and Wells Fargo continuing to manage the facility and providing up to another $75 million in borrowing capacity.
“Refinancing our debt and securing ample availability for the future is a key development for Hudson, reflecting our strong operating model and improving performance,” Brian Coleman, CEO of Hudson Technologies, said. “Our cost of capital and interest expense will improve meaningfully; the overall effective interest rate on the new term loan will be approximately 3% less than the prior term loan. Moreover, the excess availability under the newly expanded ABL facility is currently over $50 million, which provides sufficient liquidity to help meet our needs over time. We appreciate the support of our new and existing lending partners, and we look forward to continuing to drive long-term growth and cash flows as Hudson’s reclamation services play an increasingly important role in the transition to more environmentally-friendly refrigerants.”
In conjunction with entry into the new term loan facility and amended revolving credit facility, the company’s existing term loan was repaid in full and terminated.
