Wheelabrator plans Tuesday bank meeting for $1.59 billion term loans

By Paul A. Harris

Portland, Ore., Sept. 24 – Wheelabrator Technologies Inc. set a bank meeting for Tuesday to roll out $1,585,000,000 of term loans, according to a market source.

Included are a $1.25 billion seven-year term loan B, a $75 million seven-year term loan C and a $260 million eight-year second-lien loan.

Pricing and credit ratings remain to be determined.

Deutsche Bank is the left bookrunner. Barclays and BNP Paribas are the joint bookrunners.

The $1.71 billion credit facility also includes a $125 million five-year revolver.

Proceeds will be used to help fund the acquisition of Wheelabrator by Energy Capital Partners from Waste Management Inc.

Other funds for the transaction will come from about $500 million in equity.

Waste Management intends to use the net proceeds from the transaction to acquire assets related to its core business, repurchase shares and repay debt.

Closing is expected late this year, subject to Federal Energy Regulatory Commission approval and other customary conditions.

The borrowing entity is special purpose vehicle Granite Acquisition, Inc.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

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