Synagro is in Productive Discussions on Terms for Obtaining a Waiver Under Its Credit Agreement from Senior Lenders
HOUSTON, Nov. 14, 2012 /PRNewswire/ -- Synagro Technologies, Inc. announced today that it continues to make progress in discussions with its senior lenders to address its senior credit facility and strengthen its balance sheet.
The Company and its senior lenders are engaged in productive discussions on the terms of a waiver to provide relief from certain covenants included in its current credit facility as part of ongoing efforts to restructure the Company's debt profile. The Company is seeking to have the waiver address the third quarter of 2012 and prior periods, as well as certain potential defaults that may arise in the fourth quarter. Subject to such additional terms and conditions which may be contained in the final waiver agreement, the Company is requesting the lenders to forbear from exercising default-related remedies arising from the breach of the Company's required leverage ratio test and other provisions of the Company's credit agreement while the parties continue to work on efforts to restructure the Company's debt profile. Based on the productive nature of these talks, the Company anticipates reaching an agreement in a timely manner.
"We are working diligently on the terms of a waiver with our senior lenders, which will allow us to have the necessary time to continue to work with our constituents to strengthen our balance sheet. Our discussions remain focused on alternatives that strengthen Synagro for the benefit of our employees, customers, partners and the communities we serve," said Eric Zimmer, the Company's President and CEO. "Synagro remains squarely focused on serving our customers, and providing industry leading biosolids management solutions every day."
Founded in 1986, Synagro, www.synagro.com, provides a system of solutions for civic and commercial organizations that manages by-products to create new, environmentally compelling options. The Company's reliable, lasting system transforms industrial and municipal waste into environmentally sustainable resources that benefit our communities and our planet—before an environmental footprint is left behind. As the largest recycler of organic by-products in the United States, Synagro uses best-in-class processes from beneficial reuse to renewable energy that adhere to the strictest of environmental regulations to provide sustainable solutions for communities across the nation. Serving more than 600 municipal and industrial water and wastewater facilities throughout the U.S., the Company's leading systems of by-product management services help municipalities of all sizes save money and meet environmental regulations.
SOURCE Synagro Technologies, Inc.