US Ecology sets Wednesday launch for $540 million credit facility

By Sara Rosenberg

New York, April 25 - US Ecology Inc. will hold a bank meeting at 9:30 a.m. ET on Wednesday to launch its $540 million credit facility (Ba3), according to a market source.

Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are the joint lead arrangers on the deal.

The facility consists of a $125 million five-year revolver and $415 million seven-year term loan.

Company officials previously disclosed in a conference call that they expect the term loan pricing to be somewhere around the 5% to 6% area.

Proceeds will be used to help fund the acquisition of EQ-The Environmental Quality Co. from Kinderhook Industries LLC for $465 million.

Closing is expected in the second or third quarter, subject to customary conditions, and a purchase price adjustment based on working capital.

Leverage will be around 3.3 times 2013 pro forma combined company EBITDA.

US Ecology is a Boise, Idaho-based provider of radioactive, hazardous, PCB and non-hazardous industrial waste management and recycling services. EQ is a Wayne, Mich.-based fully integrated environmental services and waste management company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.