AquaVenture Holdings Limited (NYSE: WAAS), a leader in Water-as-a-Service™ solutions, today announced that it has entered into a $150.0 million senior secured credit agreement with Deutsche Bank AG as the arranger and lender, and Wells Fargo Bank as the administrative agent. The new credit agreement provides for a four-year term, non-amortizing loan that bears interest at LIBOR plus 6.00% with a LIBOR floor of 1%. Total loan proceeds are expected to be approximately $147 million, net of debt financing and origination fees, of which the Company will use approximately $100 million to repay in full the outstanding principal on its existing Trinidad, USVI, Curacao and Quench loans. The remaining proceeds are expected to be used for general corporate purposes, including acquisition and project development opportunities, and working capital needs.
"We are excited about the completion of this financing which supports our goals of optimizing, extending and expanding our capital structure," said Lee Muller, AquaVenture's Chief Financial Officer. "In addition to decreasing our weighted average cost of debt, we structured a loan facility that has the flexibility to accommodate our growth objectives."
AquaVenture is a multinational provider of WAAS™ solutions that provide customers a reliable and cost-effective source of clean drinking and process water primarily under long-term contracts that minimize capital investment by the customer. AquaVenture is composed of two operating platforms: Quench, a U.S.-based provider of Point-of-Use, or POU, filtered water systems and related services to approximately 40,000 institutional and commercial customers; and Seven Seas Water, a multinational provider of desalination and wastewater treatment solutions, providing approximately 8 billion gallons of potable, high purity industrial grade and ultra-pure water per year to governmental, municipal, industrial and hospitality customers.