EverGen Infrastructure signed a term sheet with its existing lender, Roynat Capital (a subsidiary of Scotiabank) and Export Development Canada (EDC) for a $31 million syndicated senior term loan to support the upgrade and construction of its renewable natural gas (RNG) facilities at Fraser Valley Biogas (FVB) and Net Zero Waste Abbotsford (NZWA), respectively.
“The facility is an integral component to EverGen’s capital structure as we embark on our planned upgrade and expansion projects, and we are very pleased to have the support of high-quality debt partners in Roynat and EDC,” Chase Edgelow, CEO of EverGen, said. “This facility ensures our near-term core RNG expansion projects are fully funded to deliver 480,000 GJ of RNG annually and compliments our strong balance sheet, positive cash flow and anticipated grant funding available to EverGen. This incremental liquidity and financial flexibility is fundamental as we continue to expand our RNG infrastructure platform across Canada. This milestone builds upon our team’s recent execution success including the addition of our Alberta and Ontario projects (GrowTEC and Project Radius) – delivering accretive growth to our shareholders.”
The proposed facility is a five-year senior term loan with a 10-year amortization period and interest only payments for the first 12 months. The facility is secured by certain assets of the company and includes customary terms and conditions. The facility will bear interest at a rate of 30-day banker’s acceptance + 3.5 to 4.5% based on certain covenants. The facility remains subject to the successful completion of due diligence.
Once approved, $15 million will be available to finance the Fraser Valley Biogas RNG Expansion Project and an additional $16 million will become available to EverGen to support the Net Zero Abbotsford RNG expansion project.
