Simpson Thacher represented J.P. Morgan Securities LLC and the other initial purchasers in connection with a debut Rule 144A/Regulation S offering by Synergy Infrastructure Holdings, LLC (“Synergy”) of $550 million aggregate principal amount of 7.875% Senior Secured Second Lien Notes due 2030. The offering was upsized from $500 million to $550 million.
Simpson Thacher also represented JPMorgan Chase Bank, N.A., as administrative agent, in connection with a new $500 million ABL facility for Synergy.
Synergy intends to use the net proceeds from the notes offering, together with borrowings under its new ABL facility, (i) to refinance revolving loans outstanding under its existing revolving facility, (ii) to repay the amounts due under its existing term loan, seller’s note and other equipment financings, (iii) to pay related fees and expenses and (iv) for general corporate purposes.
Synergy is one of the largest independent equipment rental providers in the United States.
The Simpson Thacher team included John O’Connell, Dave Azarkh, Matt Petrone, Patrick Baron, Sharon Foster and Rebecca Carroll (Capital Markets); Brandan Still, Ron Havas, Ramz Aziz, Kaylee Yocum and Celeste Fleetwood (Credit); Jon Pall and Soogy Lee (Collateral); Jon Cantor, Jemma Li and Jacob Chefitz (Tax); Pasco Struhs (Executive Compensation and Employee Benefits); Courtney Welshimer and Paige Brinton (Intellectual Property); and Jennie Getsin (Blue Sky).