Milestone and CommunityBank of Texas, N.A. Announce Arrangement of Sustainability-Linked Loan
Milestone Environmental Services, LLC (“Milestone”) and CommunityBank of Texas, N.A. are pleased to announce a $45 million Sustainability-Linked Loan (“SLL”) arranged for Milestone through CommunityBank of Texas, N.A. with participation by Gulf Capital Bank. The transaction highlights Milestone’s sustainability track record by linking the loan interest margin to the achievement of independently verified Sustainability Performance Targets.
Frank W. Schageman, Chief Financial Officer of Milestone said, “The SLL is a unique and pioneering form of financing in that it addresses much of what our respective stakeholders want to see – investments in, and by, businesses focused on environmental sustainability and ESG, and a willingness to recognize and reward companies able to meet specific and independently measured and verified Sustainability Performance Targets.”
“We are excited to partner with a group of commercial banks that recognize our contributions to energy industry sustainability and believe in our mission to Clean Up EnergySM. While the quantum of debt is modest and conservative for Milestone, this SLL offers excellent cost of capital and the flexibility we need to continue to develop our growing business,” added Milestone President and CEO Gabriel Rio.
“This innovative Sustainability-Linked Loan provided Milestone with the opportunity to acquire an energy waste disposal facility along with two additional permits for energy waste landfills in Texas,”said CommunityBank of Texas, N.A. Corporate Banking Officer, Jason Beaton.
“The distinctive structure of SLL allows companies, like Milestone, to leverage their environmental stewardship and ESG performance by linking their financing costs to execution on Milestone’s sustainability strategy.”
Jason Sirkel, CommunityBank of Texas, N.A. Senior Regional CEO added, “We admire Milestone’s commitment to ESG initiatives, and we are pleased to work with them and Gulf Capital Bank on this relationship.”
Milestone and CommunityBank of Texas, N.A. are committed to a shared responsibility in sustainability practices and protecting our communities for the benefit of all stakeholders.