Enviri Corporation completes refinancing of Revolving Credit Facility
Enviri (NYSE: NVRI) has successfully refinanced its senior secured revolving credit facility. The new arrangement includes a $625 million Extended Revolving Credit Facility maturing on September 5, 2029, and a $50 million existing Revolving Credit Facility maturing on March 10, 2026. This brings the total available credit to $675 million.
The refinancing includes favorable covenant modifications, with the total net leverage ratio covenant stepping down from 5.00x to 4.00x of consolidated adjusted EBITDA by the end of 2025. The company's current covenant net leverage ratio is 3.93x, down from 5.35x at the beginning of 2023. The Extended Revolving Credit Facility will have an interest rate ranging from 175 to 225 basis points over SOFR, depending on total net leverage.
Enviri (NYSE: NVRI) ha recentemente rifinanziato con successo la sua linea di credito revolving garantita senior. Il nuovo accordo comprende una Linea di Credito Revolving Estesa di $625 milioni, in scadenza il 5 settembre 2029, e una Linea di Credito Revolving Esistente di $50 milioni, in scadenza il 10 marzo 2026. Questo porta il totale del credito disponibile a $675 milioni.
Il rifinanziamento include modifiche favorevoli ai covenant, con il covenant dell'indice di leva finanziaria netto totale che scende da 5,00x a 4,00x dell'EBITDA rettificato consolidato entro la fine del 2025. L'attuale rapporto di leva finanziaria netta dell'azienda è 3,93x, in calo rispetto al 5,35x all'inizio del 2023. La Linea di Credito Revolving Estesa avrà un tasso di interesse che varia da 175 a 225 punti base sopra il SOFR, a seconda della leva finanziaria netta totale.
Enviri (NYSE: NVRI) ha refinanciado con éxito su línea de crédito revolving garantizada senior. El nuevo arreglo incluye una Línea de Crédito Revolving Extendida de $625 millones que vencerá el 5 de septiembre de 2029, y una Línea de Crédito Revolving Existente de $50 millones que vence el 10 de marzo de 2026. Esto lleva el total de crédito disponible a $675 millones.
El refinanciamiento incluye modificaciones favorables de covenants, con el covenant de la ratio de apalancamiento neto total que disminuye de 5.00x a 4.00x de EBITDA ajustado consolidado para finales de 2025. La ratio de apalancamiento neto actual de la compañía es 3.93x, por debajo del 5.35x a principios de 2023. La Línea de Crédito Revolving Extendida tendrá un tipo de interés que varía de 175 a 225 puntos básicos sobre el SOFR, dependiendo del apalancamiento neto total.
Enviri (NYSE: NVRI)는 성공적으로 고정 담보 회전 신용 시설을 재융자했습니다. 새로운 합의에는 2029년 9월 5일 만기가 도래하는 6억 2500만 달러 연장 회전 신용 시설과 2026년 3월 10일 만기가 도래하는 5천만 달러 기존 회전 신용 시설이 포함됩니다. 이는 총 사용 가능 신용을 6억 7500만 달러로 증가시킵니다.
재융자는 유리한 계약 수정 사항을 포함하여, 총 순 레버리지 비율이 2025년 말까지 조정된 EBITDA의 5.00배에서 4.00배로 감소합니다. 회사의 현재 계약 순 레버리지 비율은 3.93배로, 2023년 초의 5.35배에서 감소했습니다. 연장 회전 신용 시설의 이자율은 총 순 레버리지에 따라 SOFR보다 175에서 225 베이시스 포인트 범위에서 결정됩니다.
Enviri (NYSE: NVRI) a réussi à refinancer sa facilité de crédit revolving senior sécurisée. Le nouvel arrangement comprend une facilité de crédit revolving étendue de 625 millions de dollars arrivant à échéance le 5 septembre 2029, ainsi qu'une facilité de crédit revolving existante de 50 millions de dollars arrivant à échéance le 10 mars 2026. Cela porte le crédit total disponible à 675 millions de dollars.
Le refinancement comprend des modifications favorables des covenants, avec le covenant du ratio d'endettement net total qui descend de 5,00x à 4,00x de l'EBITDA ajusté consolidé d'ici fin 2025. Le ratio d'endettement net actuel de l'entreprise est de 3,93x, en baisse par rapport à 5,35x au début de l'année 2023. La facilité de crédit revolving étendue aura un taux d'intérêt variant de 175 à 225 points de base au-dessus du SOFR, selon l'endettement net total.
Enviri (NYSE: NVRI) hat erfolgreich seine senior gesicherte revolvierende Kreditfazilität refinanziert. Die neue Vereinbarung umfasst eine 620 Millionen USD erweiterte revolvierende Kreditfazilität, die am 5. September 2029 fällig wird, und eine 50 Millionen USD bestehende revolvierende Kreditfazilität, die am 10. März 2026 fällig wird. Dies erhöht das verfügbare Gesamtkreditvolumen auf $675 Millionen.
Die Refinanzierung umfasst vorteilhafte Vertragsänderungen, wobei die Gesamtnettoverschuldungsquote von 5,00x auf 4,00x des konsolidierten angepassten EBITDA bis Ende 2025 sinkt. Die aktuelle Nettoverschuldungsquote des Unternehmens liegt bei 3,93x, im Vergleich zu 5,35x zu Beginn des Jahres 2023. Die erweiterte revolvierende Kreditfazilität wird einen Zinssatz zwischen 175 und 225 Basispunkten über SOFR haben, abhängig von der gesamten Nettoverschuldung.
- Extended $625 million revolving credit facility to September 5, 2029
- Total available credit increased to $675 million
- Favorable covenant modifications with step-down in total net leverage ratio
- Covenant net leverage ratio improved from 5.35x to 3.93x since early 2023
- Enhanced financial flexibility and proactive addressing of future debt maturity
- None.
Insights
Enviri's refinancing of its revolving credit facility is a positive development for the company's financial health. The extension to 2029 for the main $625 million facility provides long-term stability and improved liquidity. The favorable covenant modifications, particularly the step-down in the total net leverage ratio, demonstrate lenders' confidence in Enviri's financial outlook.
The company's progress in reducing its leverage ratio from
This refinancing move by Enviri is strategically sound. By proactively addressing future debt maturities, the company is mitigating refinancing risk and ensuring access to capital. The strong bank support mentioned suggests confidence in Enviri's business model and financial trajectory.
The step-down leverage covenant structure incentivizes continued deleveraging, aligning with management's stated goal. This could potentially lead to improved credit ratings and lower borrowing costs in the future. The
PHILADELPHIA, Sept. 05, 2024 (GLOBE NEWSWIRE) -- Enviri Corporation (NYSE: NVRI) today announced that it has amended and extended its senior secured revolving credit facility (the “Revolving Credit Facility”).
The Company’s new
The Company’s Revolving Credit Facilities have also been amended with favorable covenant modifications. Specifically, the total net leverage ratio covenant, currently capped at 5.00x of consolidated adjusted EBITDA, will step down to 4.75x beginning September 30, 2024, to 4.50x beginning June 30, 2025, to 4.25x beginning December 31, 2025, and to 4.00x thereafter. The Company’s covenant net leverage ratio under the Revolving Credit Facility was 3.93x at the end of the second quarter of 2024 (down from 5.35x at the beginning of 2023). The Extended Revolving Credit Facility will bear interest at a rate dependent on total net leverage that ranges from 175 to 225 basis points over SOFR.
“I am pleased to announce that we have amended and extended our senior revolving credit facility,” said Tom Vadaketh, senior vice president and chief financial officer. “This transaction proactively addresses a future debt maturity and enhances Enviri’s financial flexibility. The support from our bank group for this transaction was positive, reflecting the Company’s financial position, the favorable outlook for our businesses, and our efforts to improve cash flow and reduce leverage to 2.5x in the coming years.”
The Company’s Amendment to the Revolving Credit Facility was led by BOFA Securities, Inc., BMO Capital Markets Corp., Goldman Sachs Bank USA, PNC Bank, National Association and Fifth Third Bank, who acted as Joint Bookrunners and Joint Lead Arrangers, and U.S. Bank National Association, JPMorgan Chase Bank, N.A. and HSBC Securities (USA) Inc., who acted as Joint Lead Arrangers.
This press release shall not constitute an offer to sell or a solicitation of an offer to purchase any loans or securities.
About Enviri
Enviri is transforming the world to green, as a trusted global leader in providing a broad range of environmental services and related innovative solutions. The Company serves a diverse customer base by offering critical recycle and reuse solutions for their waste streams, enabling customers to address their most complex environmental challenges and to achieve their sustainability goals. Enviri is based in Philadelphia, Pennsylvania and operates in more than 150 locations in over 30 countries. Additional information can be found at www.enviri.com.
Forward-Looking Statements
The nature of the Company's business, together with the number of countries in which it operates, subject it to changing economic, competitive, regulatory and technological conditions, risks and uncertainties. In accordance with the "safe harbor" provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, the Company provides the following cautionary remarks regarding important factors that, among others, could cause future results to differ materially from the results contemplated by forward-looking statements, including the expectations and assumptions expressed or implied herein. Forward-looking statements contained herein could include, among other things, statements about management's confidence in and strategies for performance; expectations for new and existing products, technologies and opportunities; and expectations regarding growth, sales, cash flows, and earnings. Forward-looking statements can be identified by the use of such terms as "may," "could," "expect," "anticipate," "intend," "believe," "likely," "estimate," "outlook," "plan," "contemplate," "project," "target" or other comparable terms.
Factors that could cause actual results to differ, perhaps materially, from those implied by forward-looking statements include, but are not limited to: (1) the Company's ability to successfully enter into new contracts and complete new acquisitions, divestitures, or strategic ventures in the time-frame contemplated or at all, including the Company's ability to divest the Rail business in the future; (2) the Company’s inability to comply with applicable environmental laws and regulations; (3) the Company’s inability to obtain, renew, or maintain compliance with its operating permits or license agreements; (4) various economic, business, and regulatory risks associated with the waste management industry; (5) the seasonal nature of the Company's business; (6) risks caused by customer concentration, the long-term nature of customer contracts, and the competitive nature of the industries in which the Company operates; (7) the outcome of any disputes with customers, contractors and subcontractors; (8) the financial condition of the Company's customers, including the ability of customers (especially those that may be highly leveraged or have inadequate liquidity) to maintain their credit availability; (9) higher than expected claims under the Company’s insurance policies, or losses that are uninsurable or that exceed existing insurance coverage; (10) market and competitive changes, including pricing pressures, market demand and acceptance for new products, services and technologies; changes in currency exchange rates, interest rates, commodity and fuel costs and capital costs; (11) the Company's ability to negotiate, complete, and integrate strategic transactions and joint ventures with strategic partners; (12) the Company’s ability to effectively retain key management and employees, including due to unanticipated changes to demand for the Company’s services, disruptions associated with labor disputes, and increased operating costs associated with union organizations; (13) the Company's inability or failure to protect its intellectual property rights from infringement in one or more of the many countries in which the Company operates; (14) failure to effectively prevent, detect or recover from breaches in the Company's cybersecurity infrastructure; (15) changes in the worldwide business environment in which the Company operates, including changes in general economic and industry conditions and cyclical slowdowns; (16) fluctuations in exchange rates between the U.S. dollar and other currencies in which the Company conducts business; (17) unforeseen business disruptions in one or more of the many countries in which the Company operates due to changes in economic conditions, changes in governmental laws and regulations, including environmental, occupational health and safety, tax and import tariff standards and amounts; political instability, civil disobedience, armed hostilities, public health issues or other calamities; (18) liability for and implementation of environmental remediation matters; (19) product liability and warranty claims associated with the Company’s operations; (20) the Company’s ability to comply with financial covenants and obligations to financial counterparties; (21) the Company’s outstanding indebtedness and exposure to derivative financial instruments that may be impacted by, among other factors, changes in interest rates; (22) tax liabilities and changes in tax laws; (23) changes in the performance of equity and bond markets that could affect, among other things, the valuation of the assets in the Company's pension plans and the accounting for pension assets, liabilities and expenses; (24) risk and uncertainty associated with intangible assets; and the other risk factors listed from time to time in the Company's SEC reports. A further discussion of these, along with other potential risk factors, can be found in Part I, Item 1A, “Risk Factors” of the Company’s most recently filed Annual Report on Form 10-K, as updated by subsequent Quarterly Reports on Form 10-Q, which are filed with the Securities and Exchange Commission. The Company cautions that these factors may not be exhaustive and that many of these factors are beyond the Company's ability to control or predict. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results. The Company undertakes no duty to update forward-looking statements except as may be required by law.
| Investor Contact David Martin +1.267.946.1407 dmartin@enviri.com | Media Contact Maura Pfeiffer +1.267.964.1868 mpfeiffer@enviri.com |
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