Australian fund manager AMP Capital is providing a $190m (€168.4m) loan to US waste management company Synagro.
The investment is being made for AMP Capital Infrastructure Debt Fund III, for which the company raised $4.1bn in commitments and co-investment capital. The investment is the fund’s first investment in wastewater processing.
EQT Infrastructure-owned Synagro was founded in 1986 and based in Baltimore, Maryland. The company owns or operates 21 dryers, incinerators and compost facilities that help customers beneficially reuse their biosolids.
The debt facility will be used to refinance the company’s outstanding term loan B and to finance ongoing growth projects.
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.”
