Montrose Environmental Group Announces New Sustainability-Linked Credit Facility
Montrose Environmental Group, Inc. (the “Company,” “Montrose” or “MEG”) (NYSE: MEG) announced today that the Company has entered into a new sustainability-linked credit agreement. Under the terms of the credit agreement (the New Credit Facility), the lenders agreed to extend credit to the Company in the form of a term loan, in an aggregate principal amount of
Borrowings under the New Credit Facility bear interest at a rate of, at the option of the Company, a floating rate of either a Base Rate or LIBOR plus a spread of between
Additionally, by entering into the New Credit Facility, Montrose receives up to a 5 basis point pricing adjustment based on its performance against certain sustainability and ESG related objectives pursuant to the agreement. The agreement establishes benchmarks in four key areas, the first of which pertains to diversity and inclusion objectives at the Company. The three other benchmarks are directly related to the Company’s environmental focus serving customers, including liters of water treated for PFAS, volume of methane leaks detected, and the amount of low-carbon intensity energy (MMBtu biogas) generated from waste. Sustainability and ESG performance will be measured and communicated in the Company’s annual Sustainability Report.
Allan Dicks, Montrose’s Chief Financial Officer, stated, “ESG is a focus of our business and we are delighted to announce the strengthening of our capital structure with our inaugural sustainability-linked credit facility. This new debt structure directly aligns with our commitment to sustainability and innovation, while also helping us secure an attractive cost of financing and significantly expanding our debt capacity. We thank our new and existing lenders for their continued support and confidence in our industry-leading environmental solutions.”
Bank of the West is the administrative agent for the LoanS, Swing Line Lender, L/C Issuer, and Joint Lead Arranger. Capital One, National Association and BOFA Securities, Inc. acted as joint lead arrangers.
About Montrose
Montrose is a leading environmental solutions company focused on supporting commercial and government organizations as they deal with the challenges of today, and prepare for what’s coming tomorrow. With approximately 2,000 employees across over 70 locations around the world, Montrose combines deep local knowledge with an integrated approach to design, engineering, and operations, enabling the Company to respond effectively and efficiently to the unique requirements of each project. From comprehensive air measurement and laboratory services to regulatory compliance, emergency response, permitting, engineering, and remediation, Montrose delivers innovative and practical solutions that keep its clients on top of their immediate needs – and well ahead of the strategic curve. For more information, visit www.montrose-env.com.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements may be identified by the use of words such as “intend,” “expect”, and “may”, and other similar expressions that predict or indicate future events or that are not statements of historical matters. Forward-looking statements are based on current information available at the time the statements are made and on management’s reasonable belief or expectations with respect to future events, and are subject to risks and uncertainties, many of which are beyond the Company’s control, that could cause actual performance or results to differ materially from the belief or expectations expressed in or suggested by the forward-looking statements. Further, many of these factors are, and may continue to be, amplified by the COVID-19 pandemic. Additional factors or events that could cause actual results to differ may also emerge from time to time, and it is not possible for the Company to predict all of them. Forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update any forward-looking statement to reflect future events, developments or otherwise, except as may be required by applicable law. Investors are referred to the Company’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K filed on March 24, 2021, for additional information regarding the risks and uncertainties that may cause actual results to differ materially from those expressed in any forward-looking statement.
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