Archaea Obtains Binding Commitments from Five Financial Institutions for Incremental Term Loan and Revolving Credit Facility Capacity
June 06 2022 - 4:15PM
Business Wire
Binding commitments received to upsize total
commitments under Revolving Credit and Term Loan Agreement by
approximately $450 million to at least $920 million
Archaea Energy Inc. (“Archaea,” “the Company,” or “we”) (NYSE:
LFG), an industry-leading renewable natural gas (“RNG”) company,
today announced that one of its subsidiaries has obtained binding
commitments from five financial institutions to amend its Revolving
Credit and Term Loan Agreement to, among other things, increase
aggregate total commitments by approximately $450 million to a
total of at least $920 million. The amended and upsized facilities
are expected to include an approximately $400 million senior
secured term loan credit facility and an approximately $520 million
senior secured revolving credit facility (together, the “Amended
Facilities”).
Available capacity under the Amended Facilities is expected to
be used to finance a portion of the Company’s expected capital
expenditures related to its development projects, permitted
acquisitions, fees, costs, and expenses related to the Amended
Facilities, working capital, and for other general corporate
purposes. As a result of significantly expanding and accelerating
the pace of developing its project backlog, the Company continues
to expect to enter into one or more capital markets or private
financing transactions to fund expected capital expenditures.
Among the financial institutions making binding commitments,
Comerica Bank (through its Renewable Energy Solutions group) will
act as Administrative Agent. Comerica Bank, Citizens Bank, N.A.,
Bank of Montreal, Chicago Branch, and JPMorgan Chase Bank, N.A.
will act as joint lead arrangers and joint bookrunners.
Additionally, Citigroup Global Markets Inc. (“CGMI”), on behalf of
CGMI, Citibank, N.A., Citicorp North America, Inc., and their
affiliates will act as a co-syndication agent.
The financial institutions expect to enter into a syndication
process for the Amended Facilities including the Company’s existing
bank group and potential new lenders. The amendment and final
determination of sizing of the Amended Facilities is expected to be
completed before June 30, 2022.
ABOUT ARCHAEA
Archaea Energy Inc. is one of the largest RNG producers in the
U.S., with an industry-leading platform and expertise in
developing, constructing, and operating RNG facilities to capture
waste emissions and convert them into low carbon fuel. Archaea’s
innovative, technology-driven approach is backed by significant gas
processing expertise, enabling Archaea to deliver RNG projects that
are expected to have higher uptime and efficiency, faster project
timelines, and lower development costs. Archaea partners with
landfill and farm owners to help them transform potential sources
of emissions into RNG, transforming their facilities into renewable
energy centers. Archaea’s differentiated commercial strategy is
focused on long-term contracts that provide commercial partners a
reliable, non-intermittent, sustainable decarbonizing solution to
displace fossil fuels.
Additional information is available at
www.archaeaenergy.com.
FORWARD-LOOKING STATEMENTS
This release contains certain statements that may include
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. Statements that do not
relate strictly to historical or current facts are forward-looking
and usually identified by the use of words such as “anticipate,”
“estimate,” “could,” “would,” “should,” “will,” “may,” “forecast,”
“approximate,” “expect,” “project,” “intend,” “plan,” “believe” and
other similar words. Forward-looking statements may relate to
expectations for future financial performance, business strategies
or expectations for Archaea’s business. Specifically,
forward-looking statements may include statements concerning the
expected closing of the Amended Facilities, the expected use of
proceeds therefrom and the expected size thereof. Forward looking
statements are based on current expectations, estimates,
projections, targets, opinions and/or beliefs of Archaea, and such
statements involve known and unknown risks, uncertainties and other
factors.
The risks and uncertainties that could cause those actual
results to differ materially from those expressed or implied by
these forward looking statements include, but are not limited to,
the ability to meet the conditions to closing the Amended
Facilities; general economic conditions and the possibility that
Archaea may be adversely affected by general economic, business
and/or competitive factors; and other risks and uncertainties
indicated in Archaea’s Annual Report on Form 10-K for the year
ended December 31, 2021 and Archaea’s Quarterly Report on Form 10-Q
for the quarter ended March 31, 2022, including those under “Risk
Factors” therein, and other documents filed or to be filed by
Archaea with the Securities and Exchange Commission.
Accordingly, forward-looking statements should not be relied
upon as representing Archaea’s views as of any subsequent date.
Archaea does not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events,
or otherwise, except as may be required under applicable securities
laws.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220606005913/en/
Megan Light mlight@archaea.energy 346-439-7589
Blake Schreiber bschreiber@archaea.energy 346-440-1627
Archaea Energy (NYSE:LFG)
Historical Stock Chart
From Mar 2024 to Apr 2024
Archaea Energy (NYSE:LFG)
Historical Stock Chart
From Apr 2023 to Apr 2024