Anaergia Inc. saw its stock advance 4.8% on Wednesday following confirmation that it has secured a revolving credit facility with National Bank of Canada. The provider of waste-to-value solutions entered into a credit agreement that establishes a facility with a maximum principal amount of $20 million and an option - exercisable by the lender - to raise that limit by up to $10 million.
The facility carries a three-year term and is designated for general corporate purposes as well as to help fund the execution of Anaergia’s existing contracted backlog. Structurally, the loan features a bullet repayment at maturity while permitting prepayment at any time without penalty.
Interest on amounts drawn will be determined by the applicable pricing tier, which is linked to the company’s Debt to EBITDA ratio. The agreement specifies that the total principal outstanding at any time cannot exceed the borrowing base established under the facility.
The arrangement is set up as a senior-secured facility and is subject to standard terms and conditions, including customary fees, representations and warranties and financial covenants. The lender’s option to increase available capacity to $30 million overall is conditional on the bank’s sole discretion and the satisfaction of certain conditions.
Assaf Onn, Anaergia’s chief executive officer, said the credit agreement signals rising institutional confidence in the company’s business model, project execution capabilities and financial discipline. He added that the facility will strengthen the company’s balance sheet flexibility as it delivers infrastructure projects for customers across multiple geographies.
This financing provides Anaergia with immediate additional liquidity while leaving open the possibility of further borrowing capacity subject to the bank’s approval. The terms tie pricing to leverage metrics and incorporate standard protections and limits typical of senior-secured lending arrangements.