Summary
Republic Services, Inc. (RSG) announced on June 8, 2018, the execution of a new $2.25 billion unsecured revolving credit facility. This facility, maturing in June 2023, replaces two prior credit facilities totaling $2.25 billion and provides enhanced financial flexibility. It includes an option to increase the facility by an additional $1.0 billion, subject to certain conditions, and offers borrowers the flexibility to choose between base rate or Eurodollar rate borrowings with applicable margins tied to debt ratings.
Key Highlights
- 1Entered into a new $2.25 billion unsecured revolving credit facility maturing in June 2023.
- 2Replaced two prior committed credit facilities totaling $2.25 billion.
- 3The new facility allows for potential increases of up to $1.0 billion at the company's option.
- 4Borrowings can be at a base rate or Eurodollar rate, with margins dependent on debt ratings.
- 5The credit agreement includes covenants requiring maintenance of specific financial ratios (EBITDA to interest, total debt to EBITDA).
- 6Compliance with covenants permits dividend payments and common stock repurchases.
- 7The termination of prior facilities was funded by available liquidity, repaying all outstanding indebtedness and fees.