PHILADELPHIA, PA — Enviri Corporation (NYSE: NVRI) has announced a strategic amendment and extension of its senior secured revolving credit facility. This move introduces a new $625 million revolving credit facility, set to mature on September 5, 2029, alongside maintaining an existing $50 million facility that will mature on March 10, 2026. Collectively, these facilities provide Enviri with $675 million in available credit.
This financial adjustment includes favorable changes to the company’s covenant terms. The net leverage ratio, which caps at 5.00x of consolidated adjusted EBITDA, will gradually decrease over the next few years. It will step down to 4.75x by September 2024, 4.50x by June 2025, and eventually settle at 4.00x after December 2025. As of the second quarter of 2024, Enviri’s net leverage ratio was 3.93x, marking a decrease from 5.35x at the start of 2023. The new credit facility will incur interest rates tied to the company’s total net leverage, ranging from 175 to 225 basis points over SOFR.
Tom Vadaketh, the senior vice president and CFO of Enviri, expressed satisfaction with the transaction, noting its role in enhancing financial flexibility and addressing future debt maturities. He highlighted the bank group’s positive support, which reflects confidence in the company’s financial health and outlook.
The amendment was led by prominent financial institutions, including BOFA Securities, Inc., BMO Capital Markets Corp., Goldman Sachs Bank USA, PNC Bank, and Fifth Third Bank, as Joint Bookrunners and Joint Lead Arrangers. U.S. Bank National Association, JPMorgan Chase Bank, and HSBC Securities (USA) Inc. also played key roles as Joint Lead Arrangers.
Enviri clarified that this announcement does not serve as an offer to sell or solicit any securities or loans. This strategic move positions the company for improved cash flow management and targeted leverage reduction in the coming years, aiming for a 2.5x leverage ratio. This development is a significant step in the company’s ongoing efforts to strengthen its financial foundation and pursue growth opportunities.
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