Clean Harbors finalizes $1 billion term loan at Libor plus 200 bps

By Sara Rosenberg

New York, Sept. 21 – Clean Harbors Inc. firmed pricing on its $1 billion incremental seven-year term loan B (Ba1/BBB-) at Libor plus 200 basis points, the low end of the Libor plus 200 bps to 225 bps talk, according to a market source.

Also, the original issue discount on the term loan was changed to 99.5 from 99, the source said.

The term loan still has a 0% Libor floor, 101 soft call protection for six months, ticking fees of half the margin from days 46 to 90, the full margin from days 91 to 135 and the full margin plus three-month Libor thereafter, and amortization of 1% per annum.

Goldman Sachs Bank USA, Truist, Citizens and Stifel are the lead arrangers on the deal.

Commitments were scheduled to be due at noon ET on Tuesday, the source added.

Proceeds will be used with available cash to fund the acquisition of HydroChemPSC from Littlejohn & Co. LLC for $1.25 billion.

Closing is expected this year, subject to regulatory approval and other customary conditions.

Clean Harbors is a Norwell, Mass.-based provider of environmental and industrial services. HydroChemPSC is a provider of industrial cleaning, specialty maintenance and utilities services.

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