An $800 million Green Term Loan Facility maturing in 2032 will provide Eco Material Technologies enhanced financial flexibility for capacity investments extending the company’s role in North American cementitious materials and concrete production.
Approximately $665 million of the proceeds were used to redeem existing 7.875% senior secured green notes due 2027, the remainder available for working capital needs or other business purposes.
“This Green Term Loan Facility provides us with significant incremental capital to invest in our market leading suite of technology enabled green supplementary cementitious material manufacturing and harvesting facilities,” said Eco Material CEO Grant Quasha. “This raise 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 decarbonizing the cement and concrete sectors in North America by doubling our business to 20 million tons per year of SCM production and recycling.”
Beyond building SCM capacity, the Green Term Loan Facility enables the company to extend existing debt instrument maturity, increase liquidity and reduce cost of capital.
Jefferies Finance LLC, Deutsche Bank Securities Inc. and Mizuho Bank, Ltd. acted as joint lead arrangers and joint bookrunners on the transaction. Jefferies Finance also served as the administrative agent and collateral agent. Latham & Watkins LLP served as legal counsel on the Term Loan Facility and redemption of the Existing Notes. Paul Hastings LLP represented the joint lead arrangers and joint bookrunners.
