#Sustainability #United States #Credit Facility #Select Water Solutions #Gainesville, Texas

Select Water Solutions Strengthens Financial Position with $550 Million Credit Facility

Select Water Solutions, Inc. (NYSE: WTTR), recognized for its innovative sustainable water and technology solutions in the energy sector, has announced the closing of a substantial new financial arrangement. The company secured a senior secured sustainability-linked credit facility worth $550 million, intended to bolster its operational stability and support its strategic expansion initiatives.

Insights Into the Credit Facility

The newly established credit facility is structured with an initial $300 million revolving credit commitment alongside a $250 million term loan, both set with a five-year maturity. This flexible setup not only ensures financial resilience but also enables Select Water to pursue its ambitious growth trajectories. Furthermore, the facility allows for a potential increase of up to $200 million in additional commitments from either new or existing lenders within the next four years.

As of the facility’s closing, Select Water reported no outstanding borrowings under the revolving credit line and approximately $20 million in issued letters of credit. The Term Loan component has been fully funded, marking a significant advancement in the company’s financial posture by retiring its previous credit obligations.

Commitment to Sustainability and Accountability

In alignment with its commitment to sustainability, the credit facility has incorporated dual sustainability-linked targets that mirror those from its previous credit arrangement. Select Water is incentivized with reduced borrowing costs when it meets specific metrics regarding increased produced water recycling and maintaining top-tier safety standards. Conversely, inadequate performance against these targets can result in penalties, creating a balanced accountability framework.

John Schmitz, the Chairman, President, and CEO of Select Water, emphasized the importance of this credit facility in strengthening the company’s balance sheet and enhancing overall liquidity. The strategic foundation of the facility is positioned to propel Select’s expansion of large-scale water infrastructure and advance industry-leading recycling initiatives, ultimately leading to sustainable solutions for its clients. With over $150 million in contracted projects currently underway, Select Water is poised to deliver significant cash flow and returns for its stakeholders in the ensuing years.

Strategic Focus and Future Growth

Select Water's financial executives highlight the alignment of this credit facility with their strategic approach towards prudent investments backed by long-term agreements. This focus, coupled with an impressive financial profile, ensures that Select Water not only navigates its growth via organic channels but also positions itself favorably for acquisitions.

Chris George, Executive Vice President and CFO, remarked on the enhanced liquidity enabling Select to further scale its rapidly growing Water Infrastructure segment, which has seen profitability more than triple in the previous two years. This term-loan component enhances the company's capacity to fund critical capital projects that set the groundwork for future revenue opportunities.

Ultimately, with nearly $400 million in liquidity, Select Water is well-equipped to forge ahead, leveraging both organic growth and acquisition pathways. The sustainability-linked structure demonstrates the company’s enduring commitment to environmental stewardship, further strengthening its position as a leading and trusted provider within the industry.

The credit facility was facilitated by Bank of America leading the arrangement, while JPMorgan Chase Bank, Bank OZK, and MUFG Bank acted as joint arrangers. This backing from prominent financial institutions reflects the robust confidence in Select Water’s potential for responsible and sustained growth.

For more updates on this and other initiatives, please visit Select Water Solutions.