US Ecology gets $95 million of new revolvers via Wells Fargo

By Sara Rosenberg

New York, Nov. 1 - US Ecology Inc. closed on $95 million of new revolving credit facilities, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Wells Fargo acted as the lead bank on the deal that was completed on Oct. 29.

The facilities consist of a $20 million revolver due June 15, 2013 that will be used for working capital and a $75 million reducing revolver due Nov. 1, 2015 that was used to acquire all of the shares of Seaway TLC Inc. and will be available for working capital as well.

Pricing on the revolver can range from Libor plus 130 basis points to 237.5 bps and the commitment fee can range from 25 bps to 55 bps, based on the company's funded debt ratio.

And, pricing on the reducing revolver can range from Libor plus 195 bps to 290 bps and the commitment fee can range from 25 bps to 35 bps, also based on the funded debt ratio.

The reducing revolver will be downsized by $2.78 million on the last day of each June, September, December and March beginning June 30, 2011 and continuing through maturity.

Financial covenants under the facilities include a maximum funded debt ratio, a maximum fixed charge coverage ratio, a minimum required tangible net worth and a minimum current ratio.

The new facilities replace the company's previous $20 million revolver.

US Ecology is a Boise, Idaho-based provider of radioactive, hazardous, PCB and non-hazardous industrial waste management and recycling services to commercial and government entities.

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