Total commitments increased to $1.1 billion and
are expected to be sufficient to fund Archaea’s development capital
expenditures and acquisition of INGENCO
Archaea Energy Inc. (“Archaea,” “the Company,” or “we”) (NYSE:
LFG), an industry-leading renewable natural gas (“RNG”) company,
today announced that it1 has successfully closed the previously
announced amendment to its Revolving Credit and Term Loan
Agreement. Aggregate commitments now total $1.1 billion, an
increase of approximately $630 million from the original
facilities, including a $400 million senior secured term loan
credit facility and a $700 million senior secured revolving credit
facility (together, the “Amended Facilities”). The interest rate
for the Amended Facilities remains unchanged at the secured
overnight financing rate (“SOFR”) plus 275 basis points for the
revolving credit facility and SOFR plus 325 basis points for the
term loan credit facility. The maturity date of the Amended
Facilities remains unchanged at September 15, 2026.
Available capacity under the Amended Facilities is expected to
be used to fund (a) the Company’s previously announced acquisition
of NextGen Power Holdings LLC (together with its subsidiaries,
“INGENCO”), which is expected to close on or after July 1, 2022,
and other Permitted Acquisitions as defined thereunder, (b) capital
expenditures related to the Company’s previously announced
Lightning Renewables joint venture with Republic Services Inc., and
other Permitted Investments as defined thereunder, (c) other
capital expenditures within the Company’s development plan, (d)
expenses related to the Amended Facilities, and (e) to provide
working capital and for other general corporate purposes.
The Amended Facilities, along with the Company’s other existing
sources of liquidity, are expected to be sufficient to fund the
Company’s acquisition of INGECO and development capital needs,
including capital expenditures related to projects within the
Company’s Lightning Renewables joint venture with Republic
Services, Inc., projects related to INGENCO, and core development
projects, for the foreseeable future, thereby eliminating the need
for additional external capital in the near-term based on the
Company’s current development plans and backlog.
“The successful amendment and upsize of our bank facilities is a
momentous achievement for Archaea, one that puts us in a strong
position to successfully execute on the robust project backlog we
have worked diligently to develop over the past year,” said Nick
Stork, Archaea's Co-Founder and Chief Executive Officer. “The
strong support from our lender group, as evidenced by the over $600
million incremental commitments under the Amended Facilities,
demonstrates confidence in our differentiated business model and
ability to execute on our project backlog at industry-leading speed
and cost due to our technology-driven approach and gas processing
expertise. The Archaea team today is more unified than ever in our
commitment, passion, and excitement for achieving our development
goals, and we look forward to seeing the meaningful decarbonization
impact our RNG facilities will bring to our stakeholders including
partners, customers and local communities.”
1. Through Archaea Energy Operating LLC, a subsidiary of the
Company.
ABOUT ARCHAEA
Archaea Energy Inc. is one of the largest RNG producers in the
U.S., with an industry-leading platform and expertise in
developing, constructing, and operating RNG facilities to capture
waste emissions and convert them into low carbon fuel. Archaea’s
innovative, technology-driven approach is backed by significant gas
processing expertise, enabling Archaea to deliver RNG projects that
are expected to have higher uptime and efficiency, faster project
timelines, and lower development costs. Archaea partners with
landfill and farm owners to help them transform potential sources
of emissions into RNG, transforming their facilities into renewable
energy centers. Archaea’s differentiated commercial strategy is
focused on long-term contracts that provide commercial partners a
reliable, non-intermittent, sustainable decarbonizing solution to
displace fossil fuels.
Additional information is available at
www.archaeaenergy.com.
FORWARD-LOOKING STATEMENTS
This release contains certain statements that may include
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Statements that do not
relate strictly to historical or current facts are forward-looking
and usually identified by the use of words such as “anticipate,”
“estimate,” “could,” “would,” “should,” “will,” “may,” “forecast,”
“approximate,” “expect,” “project,” “intend,” “plan,” “believe” and
other similar words. Forward-looking statements may relate to
expectations for future financial performance, business strategies
or expectations for Archaea’s business. Specifically,
forward-looking statements may include statements concerning the
expected closing of the Amended Facilities, the expected use of
proceeds therefrom and the expected size thereof. Forward looking
statements are based on current expectations, estimates,
projections, targets, opinions and/or beliefs of Archaea, and such
statements involve known and unknown risks, uncertainties and other
factors.
The risks and uncertainties that could cause those actual
results to differ materially from those expressed or implied by
these forward looking statements include, but are not limited to,
the ability to meet the conditions to closing the Amended
Facilities; general economic conditions and the possibility that
Archaea may be adversely affected by general economic, business
and/or competitive factors; and other risks and uncertainties
indicated in Archaea’s Annual Report on Form 10-K for the year
ended December 31, 2021 and Archaea’s Quarterly Report on Form 10-Q
for the quarter ended March 31, 2022, including those under “Risk
Factors” therein, and other documents filed or to be filed by
Archaea with the Securities and Exchange Commission.
Accordingly, forward-looking statements should not be relied
upon as representing Archaea’s views as of any subsequent date.
Archaea does not undertake any obligation to update forward-looking
statements to reflect events or circumstances after the date they
were made, whether as a result of new information, future events,
or otherwise, except as may be required under applicable securities
laws.
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version on businesswire.com: https://www.businesswire.com/news/home/20220630005677/en/
ARCHAEA Megan Light mlight@archaea.energy
346-439-7589
Blake Schreiber bschreiber@archaea.energy 346-440-1627
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