Ecobat, a company focused on battery recycling, refinanced existing credit facilities in North America and Europe, entered a new five-year upsized global funding facility led by J.P. Morgan. The facility was established by a syndicate of lending institutions, for which J.P. Morgan acted as administrative agent.
The terms of the new facility not only extended maturities of the outgoing facilities, but it also offered further upsizing of the global facility to support Ecobat’s growth plans. The new financing facility consists of a revolving credit facility and letter of credit commitments on terms and conditions beneficial to Ecobat.
“This global credit facility is a testament to Ecobat’s strong financial and operational performance for our stakeholders. It will support our continued growth and service to our customers as the worldwide leader in battery recycling,” Jimmy R. Herring, CEO of Ecobat, said. “We highly value our long-term relationship with J.P. Morgan and our new syndicate banks.”
The financing follows a string of acquisitions by Ecobat in recent months. In July, Ecobat acquired Promesa, an EV lithium-ion battery recycling company, which enabled the company to become the only service provider across Europe to offer the full suite of lithium-ion recycling services. In October, Ecobat acquired Emrol, an e-mobility and motive power battery distributor in the Benelux region of Europe.
Batteries remain an essential element of powering modern technology. Currently, more than one billion vehicles are powered by lead batteries, and is expected to double to two billion by 2030. 99% of these lead batteries are recycled in the United States and Europe.
The total amount of the new facility was not disclosed. White & Case acted as counsel for Ecobat, and Latham & Watkins acted as counsel for J.P. Morgan.