AMP Capital adds $190 million investment to infrastructure debt portfolio

By AMP Capital media team

AMP Capital has announced it will provide a US$190 million term loan to EQT Infrastructure-owned Synagro, the leading US provider of residuals management solutions.

Founded in 1986 and based in Baltimore, Maryland, Synagro is a core infrastructure company with an asset-based business model delivering an essential service to more than 600 municipal customers in 37 states and the District of Columbia. The company owns or operates 21 dryers, incinerators and compost facilities that help customers beneficially reuse their biosolids. The company is also the largest US player servicing municipal wastewater treatment plants.

Synagro relies on relationships stretching back 20 years and its deep expertise to develop trusted partnerships cemented by long-term agreements with their municipal customer base. Over 60 per cent of US municipalities outsource their biosolids treatment and disposal obligations.

The debt facility will be used to refinance the company’s outstanding Term Loan B and to finance ongoing growth projects.

The investment, held through AMP Capital’s Infrastructure Debt Fund III (IDF III), marks the fund’s first investment in wastewater processing and is in line with the fund’s strategy to invest in long-term assets in the utilities, telecommunications, energy and transport sectors.

AMP Capital Infrastructure Debt Partner Patrick Trears commented: “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.

“We are pleased to add this new investment to our infrastructure debt portfolio on behalf of our investors around the world.”

The transaction marks the continued success of IDF III, which closed to new investment in 2017 after reaching its hard cap of US$2.5 billion, believed to be one of the largest fundraises in the world for an infrastructure debt strategy.

AMP Capital’s Infrastructure Debt team has 15 investment professionals located in London, New York and Sydney. The team has invested more than US$5 billion in 65 infrastructure debt assets since 2001.

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Important notes

This article has been prepared to provide general information and does not constitute 'financial advice' for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, 'AMP') make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors.

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