Dive Brief:
- Cleveland, TN-based Santek secured a new credit facility, which will position the company to refinance its existing financial obligations and leverage unused debt capacity for working capital, capital expenditures and acquisitions, as well as support other corporate expenses, the company said in a press release.
- The financing sources—obtained with guidance from Lampert Debt Advisors—are a Revolving Credit facility, a Unitranche Senior Term loan, and a Delayed Draw term loan led by Goldman Sachs Specialty Lending Group LP, and Benefit Street Partners LLC.
- Santek, which projects it will yield $107 million in revenue for 2016, manages 17 solid waste landfills, five transfer stations and waste collection divisions in five states.
Dive Insight:
The company's most recent acquisitions are two Georgia waste and recycling companies: Evans Recycling, in Calhoun; and Davis Disposal, in Ringgold. In 2013 the company bought Trion-GA-based White Sanitation’s residential, commercial and industrial waste collection services.
The company is making the most of its resources and purchasing capacity to stretch and grow, investing in multiple-stream material recovery enabling it to expand its residential collection services. It's doing this by entering private-government partnerships for firmer footing in landfill operations, and through acquisitions to internalize greater waste volumes while strengthening its presence in new regions.
Of its newest capital move, Santek CEO Kenneth Higgins said, "This financing provides Santek with the platform and capital to realize our plans for growth by building waste collection activities that leverage our investment in landfill operations. The unused capital capacity inherent in this financing will fuel our internal growth and growth through acquisitions."
