EMCOR Group entered into a $1.3 billion credit agreement with a syndicate of banks led by Bank of Montreal as agent, and BMO Capital Markets, Bank of America Merrill Lynch, JPMorgan Chase, U.S. Bank and Citizen’s Bank as joint lead arrangers and joint book runners.
The credit agreement is comprised of a $900 million revolving credit facility and a $400 million term loan. The credit agreement, which matures in August 2021, replaces the company’s existing $1.1 billion credit agreement.
The company is using the proceeds of the term loan to repay amounts drawn under its revolving credit facility in connection with its recently announced acquisition of Ardent Services and Rabalais Constructors. The revolving credit facility will be used for working capital and other general corporate purposes. The loans under the credit agreement are secured by substantially all the assets of EMCOR and its subsidiaries.
Mark Pompa, EVP and CFO of EMCOR, said, “We are pleased to announce the completion of our new credit agreement which provides incremental liquidity and extends our debt maturities. Most importantly, it provides us with enhanced flexibility to pursue all strategic growth opportunities. We are grateful for the support of our bank syndicate and look forward to our continued long term relationship.”
EMCOR Group provides mechanical and electrical construction services, industrial and energy infrastructure and building services.