HOUSTON–(BUSINESS WIRE)–Archaea Energy Inc. (“Archaea”, “the Company” or “we”) (NYSE: LFG), a leading renewable natural gas (“RNG”) company, today announced that the one of its subsidiaries has obtained binding commitments from five financial institutions to amend its revolving credit and term loan agreement to, among other things, increase total commitments from approximately $450 million to a total of at least $920 million. The amended and increased facilities are expected to include a senior secured term credit facility of approximately $400 million and a senior secured revolving credit facility of approximately $520 million (together, the “Amended Facilities”) .
The capacity available under the Modified Facilities is expected to be used to fund a portion of the Company’s planned capital expenditures related to its development projects, permitted acquisitions, fees, costs and expenses related to the Modified Facilities, the turnover and other general business expenses. purposes. Due to the significant expansion and acceleration in the pace of development of its pipeline, the Company continues to expect to enter into one or more capital markets or private financing transactions to fund planned capital expenditures. .
Of the financial institutions making binding commitments, Comerica Bank (through its Renewable Energy Solutions group) will act as administrative agent. Comerica Bank, Citizens Bank, NA, Bank of Montreal, Chicago Branch, and JPMorgan Chase Bank, NA will act as lead arrangers and joint bookrunners. In addition, Citigroup Global Markets Inc. (“CGMI”), on behalf of CGMI, Citibank, NA, Citicorp North America, Inc., and their affiliates will act as co-syndication agent.
The financial institutions expect to begin a syndication process for the modified facilities, including the Company’s existing banking group and potential new lenders. The modification and final determination of the sizing of the modified facilities should be completed before June 30, 2022.
Archaea Energy Inc. is one of the largest RNG producers in the United States, with a state-of-the-art platform and expertise in the development, construction and operation of RNG facilities to capture waste emissions and convert them into low-carbon fuel. Archaea’s innovative, technology-driven approach leverages significant expertise in gas processing, 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 turn potential sources of emissions into RNG, transforming their facilities into renewable energy hubs. Archaea’s differentiated business strategy is focused on long-term contracts that provide business partners with a reliable, non-intermittent, and sustainable decarbonization solution to replace fossil fuels.
Additional information is available at www.archaeaenergy.com.
This press release contains certain statements which 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 generally identified by the use of words such as “anticipate”, “estimate”, “could”, “will”, “should”, “will”. , “may”, “anticipate”, “approximate”, “expect”, “project”, “intend”, “plan”, “believe” and other similar words. Forward-looking statements may relate to expectations regarding future financial performance, business strategies, or expectations regarding Archaea’s business. Specifically, forward-looking statements may include statements regarding the expected closing of the Modified Facilities, the intended use of proceeds therefrom, forward-looking statements are based on Archaea’s current expectations, estimates, projections, targets, opinions and/or beliefs, and such statements involve known and unknown risks, uncertainties and other factors.
The risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the ability to satisfy the closure conditions of the modified 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 disclosed in Archaea’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and Archaea’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, including those listed under “Risk Factors”, and other documents filed or to be filed by Archaea with the Securities and Exchange Commission.
Accordingly, forward-looking statements should not be taken to represent the views of Archaea as of any future date. Archaea undertakes no obligation to update forward-looking statements to reflect events or circumstances after the date on which they were made, whether as a result of new information, future events or otherwise, except as applicable securities laws require it.