AMP Capital will provide a $190 million term loan to Synagro, the leading U.S. provider of residuals management solutions.
Founded in 1986 and based in Baltimore, Synagro is a core infrastructure company with an asset-based business model and more than 600 municipal customers in 37 states and the District of Columbia. The company owns or operates 21 dryers, incinerators and compost facilities that help customers beneficially reuse their biosolids. It is owned by EQT Infrastructure.
The debt facility will be used to refinance the company’s outstanding term loan B and to finance ongoing growth projects.
The investment, held through AMP Capital’s Infrastructure Debt Fund III (IDF III), marks the fund’s first investment in wastewater processing and is in line with the fund’s strategy to invest in long-term assets in the utilities, telecommunications, energy and transport sectors.
AMP Capital Infrastructure Debt Partner Patrick Trears commented, “Water and wastewater is a core area of focus for our strategy due to the essential nature of water assets and their insulation from cyclical trends. We are thrilled to be partnered with Synagro, which has a market-leading position and excellent operational capabilities. We are pleased to add this new investment to our infrastructure debt portfolio on behalf of our investors around the world.”
The transaction marks the continued success of IDF III, which closed to new investment in 2017 after reaching its hard cap of $2.5 billion.
