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December 17, 2015
Santek Waste Services Inc. has completed a $153 million recapitalization of the company to address current debt and provide for growth opportunities.
Cleveland, Tenn.-based Santek, which calls itself the largest privately held manager of publicly owned solid waste landfills in the United States, secured a new credit facility for the company, according to a news release.
The credit facility will allow Santek to refinance its existing indebtedness. It also provides for “significant” unused debt capacity for working capital, capital expenditures and acquisitions while also providing capital for other general corporate purposes, the company said.
Santek estimates its 2016 revenues at $107 million.
"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," said CEO Kenneth Higgins. "The unused capital capacity inherent in this financing will fuel our internal growth and growth through acquisitions.”
The financing was composed of a Revolving Credit facility, a Unitranche Senior Term loan as well as a Delayed Draw term loan led by Goldman Sachs Specialty Lending Group LP and Benefit Street Partners LLC. Lampert Debt Advisors served as exclusive financial advisor and placement agent to Santek.
Santek is a vertically integrated waste firm that currently manages 17 solid waste landfills, five transfer stations and waste collection divisions in five states, primarily in the Southeast.
Santek has been relatively quiet lately, but in 2013 it acquired White Sanitation, based in Trion, Ga., including all its residential, commercial and industrial waste collection customers. Earlier in the year it bought two other waste and recycling companies in Georgia: Evans Recycling, based in Calhoun, and Davis Disposal, headquartered in Ringgold.
Among more recent waste industry deals, Houston-based Waste Management Inc. recently received antitrust clearance from the Justice Department to acquire Southern Waste Systems. Davie, Fla.-based Southern Waste Systems provides waste hauling to the Florida counties of Miami-Dade, Broward, Palm Beach, Martin and St. Lucie.
Ponte Vedra, Fla.-based Advanced Disposal has acquired three haulers in the last month. It purchased Fort Wayne, Ind.-based Earth First LLC; Webb Waste Inc. of Macon, Ga.; and Ball Ground, Ga.-based AC Sanitation, Inc.
News Editor, Waste360
Allan Gerlat joined the Waste360 staff in September 2011 as news editor. He was the editor of Waste & Recycling News for the first 16 years of its history, and under his guidance the publication won 27 national and regional awards.
Before Waste & Recycling News, Allan worked at another Crain Communications publication, Rubber & Plastics News, which covers rubber product manufacturing. He began with the publication as associate editor and eventually became managing editor, a position he held for nine years.
Allan is a graduate of Ohio University, where he earned a BS in journalism. He is based in Sagamore Hills, in northeast Ohio.
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