AMP Capital will provide a $190 million term loan to EQT Infrastructure-owned Synagro, a U.S. provider of residuals management solutions.
Founded in 1986 and based in Baltimore, Synagro is a core infrastructure company with an asset-based business model delivering an essential service to customers in 37 states and the District of Columbia. The company owns or operates 21 dryers, incinerators and compost facilities that help customers beneficially reuse their biosolids. The company is also the largest U.S. player servicing municipal wastewater treatment plants.
The debt facility will be used to refinance the company’s outstanding Term Loan B and to finance ongoing growth projects.
The investment, held through AMP Capital’s Infrastructure Debt Fund III (IDF III), marks the fund’s first investment in wastewater processing and is in line with the fund’s strategy to invest in long-term assets in the utilities, telecommunications, energy and transport sectors.
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.”
The transaction marks the continued success of IDF III, which closed to new investment in 2017 after reaching its hard cap of $2.5 billion. The fund’s team has invested more than $5 billion in 65 infrastructure debt assets since 2001.
