Eco Material Technologies announces close of US$800 million term loan facility
Published by Alfie Lloyd-Perks,
Editorial Assistant
World Cement,
Eco Material Technologies Inc. have announced the successful closing of an US$800 million term loan credit facility (the 'Green Term Loan Facility') that matures in February 2032 and provides Eco Material with enhanced financial flexibility and support for its strategic initiatives.
Grant Quasha, Eco Material's Chief Executive Officer, commented, "We are very excited to close this new 'Green Term Loan Facility', which provides us with significant incremental capital to invest in our market leading suite of technology enabled green supplementary cementitious material manufacturing and harvesting facilities. This raise comes from a position of strength and reflects our strong performance over the past year and robust pipeline of projects. We appreciate the ongoing support from our existing lenders, resulting in an oversubscribed raise and are excited for the growth in front of us as we push towards our goal of decarbonising the cement and concrete sectors in North America by doubling our business to 20 million tpy of SCM production and recycling."
Jefferies Finance LLC, Deutsche Bank Securities Inc. and Mizuho Bank, Ltd. acted as joint lead arrangers and joint bookrunners on the transaction. Jefferies Finance LLC also serves as the administrative agent and the collateral agent.
Approximately US$665 million of the proceeds of the 'Green Term Loan Facility' were used to redeem Eco Material's existing 7.875% Senior Secured Green Notes due 2027 (the "Existing Notes") and the remainder will be used for working capital needs and other business purposes. The new Green Term Loan Facility enables Eco Material to extend the maturity of its existing debt instruments, increase liquidity and reduce cost of capital, strengthening the balance sheet by offering better economic terms compared to the Existing Notes and the covenant flexibility to seek future growth opportunities. The Green Term Loan Facility provides loans that accrue interest at either a term Secured an Overnight Financing Rate ("SOFR") plus an applicable margin or an alternate base rate plus an applicable margin. The Green Term Loan Facility does not include a financial maintenance covenant.
With the closing of the 'Green Term Loan Facility', Eco Material is optimally positioned to leverage its strengthened balance sheet and execute on new growth opportunities.
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Read the article online at: https://www.worldcement.com/the-americas/13022025/eco-material-technologies-announces-close-of-800-million-term-loan-facility/
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