US Ecology cuts spread on $415 million term loan to Libor plus 300 bps

By Sara Rosenberg

New York, May 19 - US Ecology Inc. reduced pricing on its $415 million seven-year term loan to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

Additionally, the original issue discount on the term loan was tightened to 99¾ from 991/2, the source said.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company's $540 million credit facility (Ba3/BB+) 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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