Republic Services enters $3 billion five-year restated credit facility

By Marisa Wong

Los Angeles, Aug. 23 – Republic Services, Inc. entered into a $3 billion amended and restated credit agreement on Aug. 17, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is administrative agent, swingline lender and letter-of-credit issuer. BofA Securities, Inc., JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners with JPMorgan and Wells Fargo Bank, NA as co-syndication agents.

The credit agreement amends and restates the company’s prior credit agreement dated June 8, 2018.

The restated credit agreement is unsecured and will mature in August 2026. The company may request two one-year extensions.

The credit agreement includes a feature allowing the company to increase availability under the facility by an aggregate amount of up to $1 billion.

Borrowings bear interest at Libor plus an applicable margin based on the company’s debt ratings. The applicable margin ranges from 68.5 basis points to 110 bps.

The credit agreement includes provisions for Libor to be replaced by SOFR.

There is also a facility fee based on debt ratings that ranges from 6.5 bps to 15 bps.

Republic, in consultation with one or more lenders selected by the company to be the sustainability coordinator under the credit agreement, will be entitled to establish specified key performance indicators with respect to environmental, social and governance targets of the company and its subsidiaries.

The sustainability coordinator, the company and the administrative agent may amend the credit agreement (unless that amendment is objected to by lenders holding more than 50% of the commitments), solely for the purpose of incorporating the key performance indicators so that some adjustments to the otherwise applicable facility fee or interest rate may be made based on the company’s performance against those key performance indicators.

In addition, the credit agreement contains a covenant requiring the company not to exceed a maximum ratio of total debt to EBITDA.

In connection with the new credit agreement, the company terminated its $1 billion 364-day revolving credit facility, which had no indebtedness or fees outstanding as of the effective date of the new facility.

The waste collection company is based in Phoenix.

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