Republic Services gets $2.25 billion revolver; terminates facilities

By Tali Rackner

Minneapolis, June 11 – Republic Services, Inc. entered into a $2.25 billion unsecured revolving credit facility on Friday with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility matures in June 2023, subject to two one-year extension options.

There is an up to $1 billion accordion option.

Borrowings bear interest at Libor plus 91 basis points to 137.5 bps, depending on the company’s debt ratings. The facility fee ranges from 9 bps to 25 bps, also based on ratings.

The credit agreement contains covenants requiring the company to maintain some financial ratios, including a minimum ratio of EBITDA to interest and a maximum ratio of total debt to EBITDA. The company may pay dividends and repurchase common stock if it is in compliance with these covenants.

Merrill Lynch, Pierce, Fenner & Smith Inc. and JPMorgan Chase Bank, NA acted as joint lead arrangers and bookrunners on the deal. JPMorgan and Wells Fargo Bank, NA are co-syndication agents. BNP Paribas, Mizuho Bank Ltd., MUFG Bank, Ltd., Sumitomo Mitsui Banking Corp., SunTrust Bank, Bank of Nova Scotia and U.S. Bank are co-documentation agents.

Also on Friday, and in connection with the new credit agreement, Republic Services terminated its existing $1 billion facility and $1.25 billion facility, each with Bank of America as administrative agent, swingline lender letter-of-credit issuer. The company used available liquidity to repay all debt and fees outstanding under the facilities.

Republic Services is a waste collection company based in Phoenix.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.