By Susanna Moon
Chicago, July 9 – Seche Environnement said it refinanced its debt through the issue of €150 million of 3.25% seven-year green bonds by way of a private placement.
The company also has obtained a €120 million amortizable bank loan and a €150 million revolving credit facility that incorporate “innovative environmental, social and governance (ESG) performance criteria,” according to an announcement.
The €150 million issue was “in the form of unrated bonds and in the form of loans, mainly through a tranche of seven-year bonds with an annual coupon of 3.25%,” the release noted.
Natixis is the global coordinator, and BNP Paribas is the lead arranger.
As for the bank loan incorporating ESG impact criteria, the company said it has negotiated a new club deal loan agreement to refinance some of its bank debt, while adding ESG criteria, including one linked to biodiversity.
The new bank agreement includes a €70 million loan maturing in 2023, which will be will be paid down annually and will be used in part to refinance residual syndicated debt.
Also, the €150 million revolving credit facility is repayable at maturity and will be used to finance growth and especially acquisitions.
The remaining €50 million amortizable term loan will be used to refinance the group’s existing euro investments.
“This club deal will provide Seche Environnement with long-term financing for its business plan, by offering increased liquidity and extending the maturity of its bank debt,” the release noted.
The agreement contains one financial covenant requiring 3.95x EBITDA, which may be increased to 4.25x EBITDA if there is an acquisition.
SG CIB Group was the coordinator, bookrunner and facility agent, and Natixis was coordinator, bookrunner and documentation agent.
Based in Paris, Seche operates facilities for the treatment and storage of all types of non-radioactive industrial and household waste in France.
Bond issue
| Issuer: | Seche Environnement
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| Issue: | ESG bonds
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| Amount: | €150 million
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| Maturity: | Seven years
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| Coupon: | 3.25%
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| Coordinator: | Natixis
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| Lead manager: | BNP Paribas
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| Distribution: | Private placement
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