Insituform taps new term loan for $65 million 6.54% notes redemption

By Toni Weeks

San Diego, Sept. 1 - Insituform Technologies, Inc. said it will use a portion of the proceeds from its new credit facility to redeem $65 million of its 6.54% senior notes due April 2013 and pay the associated $5.6 million make-whole payment in connection with the notes.

According to a press release, Insituform replaced its existing $115 million facility with a new $500 million credit facility consisting of a $250 million five-year term loan facility and a five-year revolving credit line. The company withdrew the entire amount of the term loan on Aug. 31 to fund the 6.54% notes redemption, to pay the $115.8 million cash purchase price of Fyfe Group, LLC, to retire $52.5 million of outstanding debt under its previous credit facility and to pay expenses associated with both the acquisition of Fyfe and the new credit facility.

Insituform is a St. Louis-based provider of proprietary technologies and services for the corrosion protection of industrial pipelines and for the rehabilitation and strengthening of sewer, water, energy and mining piping systems, buildings, bridges and tunnels and waterfront structures.

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