GFL Environmental, a North American diversified environmental services company, amended its $725 million senior secured term loan to reduce its borrowing rate to SOFR +200 basis points from the previous SOFR +250 basis points, in a transaction that was significantly oversubscribed. The company also extended the maturity of the senior secured term loan from 2027 to 2031.
“On the back of our recent credit rating upgrade, we opportunistically pursued the repricing of our senior secured term loan with a view to further increasing our free cash flow, extending our debt maturities and preserving balance sheet flexibility,” Patrick Dovigi, founder and CEO of GFL, said. “Our ability to reprice our senior secured term loan on one of the tightest pricing terms since 2008 for a company with our credit quality is a continued testament to our high-quality, long-standing debt investors, many of whom have been with us for over a decade. Over the course of the last 12 months, we have been able to reduce our senior secured term loan spread by 110 basis points given our focus on delivering. We remain committed to achieving our net leverage target of between 3.65x and 3.85x by the end of the year and we believe this transaction will move us closer to our broader goal of achieving an investment grade credit rating in the medium term.”
