Enviri has amended and extended its senior secured revolving credit facility. The amendment was led by BofA Securities, BMO Capital Markets, Goldman Sachs Bank USA, PNC Bank and Fifth Third Bank. The banks acted as joint bookrunners and joint lead arrangers. U.S. Bank, JPMorgan Chase Bank and HSBC Securities also participated in the transaction, acting as joint lead arrangers.
The company’s new $625 million revolving credit facility will mature on Sept. 5, 2029. Additionally, the company will maintain its existing revolving credit facility for an amount of $50 million with certain lenders. This facility will mature on March 10, 2026. Together, the company has $675 million available under its revolving credit facilities.
The company’s revolving credit facilities have also been amended with favorable covenant modifications. Specifically, the total net leverage ratio covenant, currently capped at 5.00x of consolidated adjusted EBITDA, will step down to 4.75x beginning Sept. 30, 2024, to 4.50x beginning June 30, 2025, to 4.25x beginning Dec. 31, 2025, and to 4.00x thereafter. The company’s covenant net leverage ratio under the revolving credit facility was 3.93x at the end of the second quarter of 2024 (down from 5.35x at the beginning of 2023). The extended revolving credit facility will bear interest at a rate dependent on total net leverage that ranges from 175 to 225 basis points over SOFR.
“I am pleased to announce that we have amended and extended our senior revolving credit facility,” Tom Vadaketh, senior vice president and chief financial officer of Enviri, said. “This transaction proactively addresses a future debt maturity and enhances Enviri’s financial flexibility. The support from our bank group for this transaction was positive, reflecting the company’s financial position, the favorable outlook for our businesses and our efforts to improve cash flow and reduce leverage to 2.5x in the coming years.”
