Archaea Energy, a renewable natural gas company, obtained binding commitments from five financial institutions to amend its revolving credit and term loan agreement to, among other things, increase aggregate total commitments by approximately $450 million to a total of at least $920 million. The amended and upsized facilities are expected to include an approximately $400 million senior secured term loan credit facility and an approximately $520 million senior secured revolving credit facility.
Available capacity under the amended facilities is expected to be used to finance a portion of the company’s expected capital expenditures related to its development projects, permitted acquisitions, fees, costs and expenses related to the amended facilities, working capital and for other general corporate purposes. As a result of significantly expanding and accelerating the pace of developing its project backlog, the company continues to expect to enter into one or more capital markets or private financing transactions to fund expected capital expenditures.
Among the financial institutions making binding commitments, Comerica Bank (through its renewable energy solutions group) will act as administrative agent. Comerica Bank, Citizens Bank, Bank of Montreal, and JPMorgan Chase Bank will act as joint lead arrangers and joint bookrunners. Additionally, Citigroup Global Markets (CGMI), on behalf of CGMI, Citibank, Citicorp North America and their affiliates will act as a co-syndication agent.
The financial institutions expect to enter into a syndication process for the amended facilities including the company’s existing bank group and potential new lenders. The amendment and final determination of sizing of the amended facilities is expected to be completed before June 30.