Advanced Drainage Systems, Inc. announced a proposed private offering of up to $500 million aggregate principal amount of senior unsecured notes due 2034. The company intends to use the proceeds, along with proceeds from an amended credit facility, to refinance existing debt and redeem its 5.000% senior notes due 2027.
Key takeaways
The Company intends to offer up to $500 million aggregate principal amount of senior unsecured notes due 2034.
Net proceeds will be used to redeem all outstanding 5.000% senior notes due 2027 and refinance the existing senior secured credit facility.
The Company expects to amend its senior secured credit facility to increase the revolving credit facility from $600 million to $750 million.
The term loan "B" is expected to increase from $408 million to $600 million under the Amended Credit Facility.
The Notes will be guaranteed by domestic subsidiaries that guarantee the Company's senior secured credit facility.