Montrose Environmental Group Announces New Sustainability-Linked Credit Facility
April 28 2021 - 4:05PM
Business Wire
– New Term Loan and Revolving Credit Facility
Lower Interest Expense and Reinforce Montrose’s Commitment to All
Stakeholders –
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 $175 million (“Term Loan”), and
a revolving credit facility, in an aggregate principal amount of
$125 million (“Revolver”). The Company used net proceeds from the
Term Loan and $42 million in borrowings under the Revolver to repay
all of its $175 million of outstanding borrowings under its former
term loan and former revolver and related fees and expenses.
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 1.50% and 2.50%, in the case
of LIBOR, or 1.50% to .50%, in the case of the Base Rate, based on
the Company’s net leverage ratio. The opening spread of LIBOR plus
2.0% reduces the previous term loan interest rate of LIBOR plus
5.5%.
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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version on businesswire.com: https://www.businesswire.com/news/home/20210428006078/en/
Investor Relations: Rodny Nacier (949) 988-3383
ir@montrose-env.com
Media Relations: Doug Donsky (646) 361-1427
Montrose@icrinc.com
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