Synagro details $540 million credit facility for LBO by Carlyle

By Sara Rosenberg

New York, Feb. 13 - Synagro Technologies Inc. released details on the structure of its proposed $540 million senior secured credit facility that will be used to help back its buyout by The Carlyle Group, according to a PREM14A filed with the Securities and Exchange Commission Tuesday.

Bank of America, Citigroup and Lehman are joint bookrunners on the deal, with Bank of America and Citigroup the joint lead arrangers.

The facility consists of a $100 million revolver, a $290 million first-lien term loan and a $150 million second-lien term loan.

Previously, it was known that the deal would be comprised of a revolver, a first-lien term loan and a second-lien term loan, but tranche sizes were unavailable.

Carlyle is buying Synagro in a transaction valued at $772 million, including the assumption of $310 million in debt. Synagro shareholders will get $5.76 per share in cash.

Equity financing for the deal is expected to be about $277 million.

The transaction is expected to close in the second quarter, subject to customary closing conditions, including the approval of Synagro's stockholders.

Synagro is a Houston-based recycler of biosolids and other organic residuals.

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