Waga Energy

Waga Energy Establishes a Green Syndicated Facility for Sustainable Growth

Challenge

Waga Energy, an innovator in the renewable natural gas sector aiming to make renewable natural gas more widely available, required a strategic financing solution to support the company’s rapid growth and operational expansion. Waga Energy sought a $108 million inaugural “green” syndicated facility that would seamlessly integrate with existing and future financial structures while maintaining flexibility and minimal covenants.

Solution

Waga Energy partnered with Redbridge to facilitate a comprehensive financing strategy beginning with a market pre-sounding to identify the best approach & structuring breakpoints. The strategy included constructing a financial model that provided a clear view of intra-group cash flows, and continuous bilateral consultations with lenders to maintain strong negotiating positions and address potential concerns early.

Results

The effort culminated in a $108 million green syndicated facility, split into an $87 million revolving credit facility and a $21 million term loan, both with a three-year maturity and options to extend. The facility was oversubscribed by a diverse pool of 10 regional and national banks, demonstrating strong market confidence in Waga Energy’s business model and growth trajectory. This financing structure also aligned closely with sustainability goals.