AMP Capital has announced it will provide a US$190 million term loan to EQT Infrastructure-owned Synargo, which is a US specialist in residuals management solutions.
The firm said it would use the debt facility to refinance its outstanding term loan B to finance ongoing growth projects.
The investment, which would be held through AMP Capital’s Infrastructure Debt Fund (IDF III), would be the fund’s first investment in wastewater processing. Such a move was in line with the fund’s strategy to invest in long-term assets such as utilities, telecommunications, energy and transport sectors.
Synargo, which was founded in 1986 and was a core infrastructure company servicing more than 600 municipal customers across 37 states and the District of Columbia, also owns and operates 21 dryers, incinerators and compost facilities that helped customers reuse their biosolids.
AMP Capital Infrastructure debt partner Patrick Trears said: “Water and wastewater is a core area of focus for our strategy due to the essential nature of water assets and their insulation from cyclical trends.”
“We are thrilled to be partnered with Synagro, which has a market-leading position and excellent operational capabilities. EQT Infrastructure has de-risked the company during its ownership by renewing key contracts and winning new long-term business, including concessions of 20 and 30 years in Canada.”