Ameresco, Inc. (NYSE:AMRC) Files An 8-K Entry into a Material Definitive Agreement

On November 17, 2016, Ameresco, Inc. (“Ameresco”) entered into an amendment to its third amended and restated bank credit facility with Bank of America, N.A. and Webster Bank, N.A., for which Bank of America, N.A. acts as Administrative Agent. The amendment increases the amount of the term loan under the credit facility by approximately $20 million to an aggregate of $30 million and extends the maturity date of the term loan from June 30, 2018 to June 30, 2020. Ameresco expects to use the additional borrowings to pay down the outstanding balance on the revolving credit facility. Immediately following the closing, there was approximately $28 million of borrowings outstanding under the revolving credit facility and $30 million outstanding under the term loan.

The interest rate for borrowings under the credit facility is based on, at Ameresco’s option, either (1) a base rate equal to a margin of 0.50% or 0.25%, depending on Ameresco’s ratio of Total Funded Debt to EBITDA (each as defined in the agreement), over the highest of (a) the Federal funds effective rate, plus 0.50%, (b) Bank of America’s prime rate and (c) a rate based on the London interbank deposit rate (“LIBOR”) plus 1.50%, or (2) the one-, two- three- or six-month LIBOR plus a margin of 2.00% or 1.75%, depending on Ameresco’s ratio of Total Funded Debt to EBITDA. A commitment fee of 0.375% is payable quarterly on the undrawn portion of the revolving credit facility. Immediately following the closing, the interest rate for borrowings under the revolving credit facility was 4.00%. Ameresco elected a three-month LIBOR rate for the term loan that will be effective November 23, 2016 with a rate of 2.91%.

The term loan requires quarterly principal payments of $1.5 million, with the balance due at maturity. All borrowings may be paid before maturity in whole or in part at Ameresco’s option without penalty or premium, other than reimbursement of any breakage and deployment costs in the case of LIBOR borrowings.

Other than Webster Bank, N.A., the lenders, agents and other parties to Amendment No. 4 to the Third Amended and Restated Credit and Security Agreement (the “Credit Agreement Amendment”), and their affiliates, have in the past provided, and may in the future provide, investment banking, underwriting, lending, commercial banking, capital markets and other advisory services to Ameresco or its subsidiaries; they have received, and may in the future receive, customary compensation from Ameresco or its subsidiaries for such services.

The foregoing description of our credit facility, as amended, is not complete and is subject to and qualified in its entirety by reference to (i) our credit facility, a copy of which is attached as Exhibit 10.1 to our Current Report on Form 8-K dated June 30, 2015, (ii) the first and second amendments to our credit facility, copies of which are attached as Exhibits 10.1 and 10.2, respectively, to our Quarterly Report on Form 10-Q for the quarter ended June 30, 2016, (iii) the third amendment to our credit facility, a copy of which is attached as Exhibit 10.1 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2016 and (iv) the Credit Agreement Amendment, a copy of which is attached hereto as Exhibit 10.1, each of which is incorporated herein by reference.

Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement.

The discussion in Item 1.01 is incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

The exhibit listed on the Exhibit Index immediately following the page is filed as part of this Current Report on Form 8-K.

About Ameresco, Inc. (NYSE:AMRC)
Ameresco, Inc. is a provider of energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions for businesses and organizations. The Company’s principal service is the development, design, engineering and installation of projects. Its U.S. Regions, U.S. Federal and Canada segments offer energy efficiency products and services, which include the design, engineering and installation of equipment and other measures; renewable energy solutions and services, and operations and maintenance (O&M) services. The Company’s Small-Scale Infrastructure segment sells electricity, processed landfill gas (LFG), heat or cooling, produced from renewable sources of energy and generated by small-scale plants that it owns. The Company’s Small-Scale Infrastructure segment also includes certain small-scale plants developed for customers. The All Other segment offers enterprise energy management services, consulting services and integrated-photovoltaic (PV). Ameresco, Inc. (NYSE:AMRC) Recent Trading Information
Ameresco, Inc. (NYSE:AMRC) closed its last trading session up +0.05 at 6.10 with 81,688 shares trading hands.