Advanced Drainage Systems Announces $500M Notes Offering

The company plans to use proceeds to refinance existing credit facility and redeem 2027 senior notes.

Published on Feb. 12, 2026

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Advanced Drainage Systems, Inc. (NYSE: WMS), a leading provider of water management solutions, announced plans to offer up to $500 million in senior unsecured notes due 2034. The company intends to use the proceeds, along with a term loan, to refinance its existing senior secured credit facility and redeem all of its outstanding 5.000% senior notes due 2027.

Why it matters

The notes offering and credit facility amendment will help Advanced Drainage Systems optimize its capital structure and financing costs as it continues to grow its stormwater and wastewater management business across commercial, residential, infrastructure, and agricultural markets.

The details

The notes will be guaranteed by the company's domestic subsidiaries that also guarantee its senior secured credit facility. In connection with the notes offering, Advanced Drainage Systems plans to amend its existing credit facility to increase the revolving credit facility to $750 million and the term loan 'B' to $600 million, while also extending the maturity date.

  • The notes offering is expected to close in the coming weeks, subject to market and other conditions.

The players

Advanced Drainage Systems, Inc.

A leading manufacturer of innovative stormwater and onsite wastewater solutions, serving commercial, residential, infrastructure, and agricultural markets.

Michael Higgins

VP, Corporate Strategy & Investor Relations at Advanced Drainage Systems.

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What they’re saying

“The closing of this Offering is not conditioned on the closing of the Amended Credit Facility. The completion of the Amended Credit Facility is also subject to customary closing conditions and there can be no assurance as to whether or when the Amended Credit Facility may be completed, if at all.”

— Advanced Drainage Systems (stocktitan.net)

What’s next

The company expects to complete the notes offering and credit facility amendment in the coming weeks, subject to market and other conditions.

The takeaway

Advanced Drainage Systems is proactively managing its capital structure to support the continued growth of its water management solutions business, which serves a range of critical infrastructure and development needs.