Advanced Drainage Systems Inc., a global manufacturer of water management products and solutions for commercial, residential, infrastructure and agricultural applications, priced a private offering of $350 million in 5 percent senior unsecured notes due 2027.
The notes, subject to market and other conditions, will be guaranteed by each of the company’s present and future direct and indirect domestic subsidiaries that guarantee its senior secured credit facility.
Hilliard-headquartered ADS intends to use the net proceeds from the offering for the repayment of a portion of the outstanding borrowings under its existing senior secured credit facility, with the remaining proceeds (if any) being used for general corporate purposes. Such borrowings were incurred to finance the previously announced acquisition of Infiltrator Water Technologies Ultimate Holdings Inc.
The deal, previously announced and closed, allowed ADS to purchase Infiltrator for approximately $1.08 billion, in order to build on its existing water management solutions platform and expand into the on-site septic business.
The notes and the related guarantees have not been, and will not be, registered under the Securities Act of 1933 or the securities laws of any other jurisdiction.