US Ecology talks $415 million term loan at Libor plus 325 bps

By Sara Rosenberg

New York, April 28 - US Ecology Inc. is talking its $415 million seven-year term loan at Libor plus 325 basis points with a 0.75% Libor floor and an original issue discount of 99½ for a yield of 4 1/8% ahead of its Wednesday bank meeting, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company's $540 million credit facility (Ba3) also includes a $125 million five-year revolver.

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

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.

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