Summary
Republic Services, Inc. (RSG) announced on August 26, 2020, the entry into a new $1 billion 364-day revolving credit facility. This facility, effective August 25, 2020, provides the company with substantial, albeit short-term, liquidity. The unsecured nature of the credit facility and its maturity in August 2021 are key details for investors to note regarding its immediate financial flexibility. The agreement includes customary covenants, such as a maximum total debt to EBITDA ratio, which will govern the company's leverage. Importantly, the credit facility allows for dividend payments and stock repurchases, provided these covenants are met, indicating the company's intention to continue returning capital to shareholders. The filing also notes an amendment to an existing credit agreement, primarily for conforming changes.
Key Highlights
- 1Republic Services entered into a new $1 billion 364-day revolving credit facility on August 25, 2020.
- 2The credit facility matures in August 2021.
- 3Borrowings under the new facility are unsecured.
- 4The agreement includes a covenant on maximum total debt to EBITDA ratio.
- 5The company is permitted to pay dividends and repurchase stock if covenants are met.
- 6Mandatory prepayments are required upon the sale or issuance of equity interests.
- 7An amendment was made to an existing credit agreement for conforming changes.