Evoqua Water Technologies Announces Credit Facilities Refinancing

Rhea-AI Summary

Evoqua Water Technologies Corp. (NYSE: AQUA) announced the refinancing of its credit facilities on April 1, 2021. The agreement includes a $475 million term loan maturing in 2028, a revolving credit facility of up to $350 million maturing in 2026, and a receivables financing facility of up to $150 million maturing in 2024. The refinancing reduced outstanding debt by approximately $340 million and decreased the weighted average cash borrowing cost by 0.50%. This new structure enhances liquidity, allowing for further investments in growth strategies.

Positive

• Refinancing reduced total debt by approximately $340 million.
• Decreased weighted average cash borrowing cost by 0.50%.
• Improved liquidity enhances capability for investments in growth.

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• None.

Evoqua Water Technologies Corp. (NYSE: AQUA), an industry leader in mission-critical water treatment solutions, today announced the refinancing of the company’s credit facilities on April 1, 2021.

Wholly-owned subsidiaries of the company entered into a credit agreement, which provides for a $475 million term loan maturing on April 1, 2028 and a revolving credit facility of up to $350 million maturing on April 1, 2026, and a receivables financing agreement, which provides for a receivables finance facility of up to $150 million maturing on April 1, 2024. The net proceeds of these facilities, together with cash on hand, was used to repay all outstanding indebtedness under the company’s previous credit facilities, in an aggregate principal amount of approximately $815 million. The reduction of approximately $340 million to the first lien term loan outstanding under the previous credit facilities was funded by draws on the new revolving credit facility, the new receivables finance facility and $100 million of cash on hand.

In addition to extending the maturities of the previous term loan and revolver, Evoqua reduced the weighted average cash borrowing cost by approximately 0.50% from the December 31, 2020 level. Liquidity also improved as a result of the overall financing.

JP Morgan Chase Bank serves as the administrative agent and collateral agent under the credit agreement. PNC Bank serves as the administrative agent under the receivables financing agreement.

Mr. Ron Keating, CEO commented, “We are very pleased to have the new credit facilities in place which provides attractive market rates and extended maturities. This new structure allowed us to reduce total debt while increasing liquidity and provides flexibility for continued investments in our organic and inorganic growth strategies. We appreciate the continued support from the high-quality financial institutions who participated in the underwriting.”

About Evoqua Water Technologies

Evoqua Water Technologies is a leading provider of mission-critical water and wastewater treatment solutions, offering a broad portfolio of products, services and expertise to support industrial, municipal and recreational customers who value water. Evoqua has worked to protect water, the environment and its employees for more than 100 years, earning a reputation for quality, safety and reliability around the world. Headquartered in Pittsburgh, Pennsylvania, the company operates in more than 160 locations across ten countries. Serving more than 38,000 customers and 200,000 installations worldwide, our employees are united by a common purpose: Transforming Water. Enriching Life.

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FAQ

What are the details of Evoqua's refinancing announced on April 1, 2021?

Evoqua's refinancing includes a $475 million term loan maturing in 2028, a $350 million revolving credit facility maturing in 2026, and a $150 million receivables finance facility maturing in 2024.

How much debt did Evoqua reduce with the new credit facilities?

Evoqua reduced its total debt by approximately $340 million through the refinancing of its credit facilities.

What is the impact of the refinancing on Evoqua's borrowing costs?

The refinancing decreased Evoqua's weighted average cash borrowing cost by approximately 0.50% from the December 31, 2020 level.

How does the refinancing affect Evoqua's liquidity?

The refinancing improves Evoqua's liquidity, allowing for continued investments in organic and inorganic growth strategies.