Pasadena Firm Announces $1 Billion Credit Facility Linked to Improving the Lives of People Worldwide

Tetra Tech, a Pasadena-based consulting and engineering service provider with projects worldwide, has announced the establishment of a $1 billion credit facility that it said will be linked with the company’s sustainability goals.

These goals were announced on Earth Day 2021, when the company’s management said it aims to be carbon-negative and intend to help improve the lives of one billion people by the year 2030.

Tetra Tech also joined the United Nations Global Compact in February 2018 and is a signatory to the Science Based Targets Initiative (SBTi), along with over 1,200 other companies worldwide that are leading the transition to a net-zero economy by setting emissions reduction targets grounded in climate science.

In a statement Tuesday, Tetra Tech said the the new credit facility will be linked to two key performance indicators: the reduction of greenhouse gas (GHG) emissions through the company’s projects and operational sustainability initiatives, and the improvement of people’s lives as a result of projects that provide environmental, social and governance benefits.

“The sustainability-linked credit facility announced today recognizes the global scale of Tetra Tech’s ‘Leading with Science’ approach and reaffirms our commitment to improving the lives of people around the world,” Dan Batrack, Tetra Tech Chairman and CEO, said.

Dr. Leslie Shoemaker, Tetra Tech President and Chief Sustainability Officer, said the new credit facility establishes a “ground-breaking and first-of-its-kind” measure of the environmental and social benefits associated with their projects.

“The quantification of the impact of our projects augments existing sustainability initiatives in our operations to foster efficiencies such as remote working and virtual meetings, energy-efficient offices and cloud-based IT systems,” Shoemaker said.

The credit facility increases Tetra Tech’s borrowing capacity by an additional $100 million and provides for up to a five-percent reduction in the interest rate grid for meeting sustainability targets.

“We are pleased that the bank lender group has recognized Tetra Tech’s long-term commitment to advancing sustainability and incorporated financial rewards in our credit facility for achieving measurable benefits,” Steve Burdick, Tetra Tech Chief Financial Officer, said.

The lender group was led by Bank of America, with joint lead arrangers Wells Fargo Bank, U.S. Bank, and Bank of Montreal. The lender group also included the support of HSBC Bank USA, The Bank of Nova Scotia, BNP Paribas, and City National Bank. Bank of America acted as the sole sustainability coordinator. https://www.tetratech.com/