US Ecology Amends Its Credit Agreement Extending Maturity to 2026 on Its Revolving Credit Facility

Rhea-AI Summary

US Ecology, Inc. (NASDAQ-GS: ECOL) announced an amendment to its credit agreement, extending the maturity date of its $500 million revolving credit facility to June 29, 2026. The CFO, Eric Gerratt, emphasized the amendment’s role in enhancing financial flexibility, allowing the company to fund growth initiatives and strategic acquisitions. The agreement also modifies the net leverage covenant, temporarily raising it to 5.25x as of June 30, 2021, and gradually reducing it to 4.50x by December 31, 2022.

Positive

• Extended maturity date of revolving credit facility to June 29, 2026.
• Enhanced financial flexibility to support organic growth and acquisitions.
• Temporary increase in net leverage covenant to 5.25x, allowing for operational breathing room.

Negative

• None.

BOISE, Idaho, June 30, 2021 (GLOBE NEWSWIRE) -- US Ecology, Inc. (NASDAQ-GS: ECOL) (“US Ecology” or “the Company”) announced today that it amended its credit agreement and extended the maturity date on its existing $500 million revolving credit facility for additional financial flexibility.

“We are excited to work with our financial partners to leverage our strong-free-cash flow generation and outlook to restructure and improve our credit facility,” commented Chief Financial Officer, Eric Gerratt. “This modified agreement will supplement our plan to continue to de-lever, while providing us additional liquidity and flexibility to continue to fund our organic growth initiatives and strategic acquisitions over an expanded time horizon.”

Under the terms of the amendment, the Company extended the maturity date of its $500 million revolving credit facility to June 29, 2026. The credit amendment also modified the net leverage covenant, extending the temporary increase in the net leverage covenant to 5.25x as of June 30, 2021, gradually stepping down to 4.50 as of December 31, 2022, through the duration of the agreement.

About US Ecology, Inc.
US Ecology, Inc. is a leading provider of environmental services to commercial and government entities. The company addresses the complex waste management and response needs of its customers offering treatment, disposal and recycling of hazardous, non-hazardous and radioactive waste, leading emergency response and standby services, and a wide range of complementary field and industrial services. US Ecology’s focus on safety, environmental compliance, and best-in-class customer service enables us to effectively meet the needs of US Ecology’s customers and to build long lasting relationships. US Ecology has been protecting the environment since 1952. For more information, visit www.usecology.com.

Contact: Steven Park, Director of Investor Relations   (208) 871-1653
steven.park@usecology.com      www.usecology.com

FAQ

What did US Ecology announce on June 30, 2021?

US Ecology announced an amendment to its credit agreement, extending the maturity date of its $500 million revolving credit facility to June 29, 2026.

How will the credit amendment benefit US Ecology?

The credit amendment will provide US Ecology with additional liquidity and flexibility to fund organic growth initiatives and strategic acquisitions.

What is the new net leverage covenant for US Ecology as of June 30, 2021?

The new net leverage covenant is temporarily raised to 5.25x as of June 30, 2021, reducing to 4.50x by December 31, 2022.

What is the significance of extending the revolving credit facility for US Ecology?

Extending the revolving credit facility allows US Ecology to enhance its financial stability and support future growth strategies.