US Ecology lifts term B to $450 million, flexes to Libor plus 250 bps

By Sara Rosenberg

New York, Aug. 13 – US Ecology Inc. upsized its seven-year covenant-lite term loan B (Ba3/BB+) to $450 million from $400 million and reduced pricing to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

Also, a step-down was added to the term loan B to Libor plus 225 bps if corporate family ratings are Ba2 and BB with stable outlooks and the original issue discount was tightened to 99.75 from 99.5, the source said.

The term loan still has a 0% Libor floor and 101 soft call protection for six months.

Wells Fargo Securities LLC and BofA Securities Inc. are the lead arrangers on the deal.

Recommitments are due at noon ET on Wednesday, the source added.

Proceeds will be used to refinance NRC Group Holdings Corp.’s existing debt, to pay transaction related fees in connection with US Ecology’s all-stock acquisition of NRC Group and, due to the upsizing, to repay revolving credit facility borrowings.

US Ecology is a Boise, Idaho-based provider of environmental services to commercial and government entities. NRC Group is a Great River, N.Y.-based provider of environmental, compliance and waste management services.

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