Quest Resource, a national company in environmental waste and recycling services, completed its refinancing process and amended its financing agreements with Monroe Capital Management Advisors and PNC Bank.
“Earlier this year, the board of directors announced the formation of a financing committee to evaluate alternative debt structures focused on lowering the company’s long-term cost of capital and supporting long-term growth,” Dan Friedberg, chairman of the board of directors for Quest, said. “After an exhaustive process, which included discussions and proposals from multiple financing sources, the company has executed on a new lending package that will decrease our blended interest rate margin by about 150 basis points, reducing interest expense by approximately $1 million annually. Our current lenders, Monroe and PNC, reflecting their confidence in our business, ultimately offered the most attractive terms.”
“The substantial reduction in interest expense and rates, reduced fees and improved terms all reflect the strong credit profile of our company and the strength of our business model,” S. Ray Hatch, president and CEO of Quest, said. “With an increased revolving credit line, improved terms, and extended maturities, our balance sheet is stronger and is well-positioned to support our long-term organic growth and opportunistic M&A strategies.”
“We greatly appreciate the support of our partners at PNC and Monroe and are looking forward to continuing to work with them going forward,” Brett Johnston, chief financial officer of Quest, said. “Their confidence in our business was clearly demonstrated and positions us well for the future.”
Summary of the amended credit agreement with Monroe Capital Management Advisors:
- $54 million aggregate principal amount of term loan
- Extended maturity date to June of 2030
- Reduced interest rate of SOFR plus 450 to 550 basis points that varies based on leverage, reflecting a margin reduction of 100 to 200 basis points from the previous agreement
Summary of the amended credit agreement with PNC Bank:
- Increased revolver commitment from $35 million to $45 million
- Extended maturity date to December of 2029
- Reduced interest rate of SOFR plus 200 basis points, reflecting a margin reduction of 25 basis points from the previous agreement
- Improved terms to increase availability
