Clean Harbors amends loan, modifying EBITDA and fixed charge ratio requirements

By Sara Rosenberg

New York, Aug. 14 - Clean Harbors Inc. amended its credit facility changing the EBITDA requirement and the fixed charge ratio, providing the company with additional flexibility to pursue long-term growth objectives.

"Our revised covenants require the company to generate approximately $60 million in EBITDA over the next four quarters, and more realistically reflect the lower sales levels we are experiencing versus those projected a year ago," said Mark Burgess, executive vice president of administration and chief financial officer, in a news release.

"Our fixed charge ratio has also been amended to incorporate the company's expectations over the coming quarters on EBITDA generation, as well as environmental and capital spending requirements."

Originally, the covenant requirements in the credit agreement were negotiated prior to the completion of the acquisition of Safety-Kleen's Chemical Services Division and were based upon pre-acquisition forecasts.

"In light of our actual experience over the past year and the current state of the company, we have worked closely with our lenders to amend those covenants to more appropriate levels given the current market environment," Burgess said.

For the second quarter, the company reported revenues of $172 million, compared with $60.1 million in the same quarter last year, net loss was $6.8 million, or $0.57 per diluted share, compared to net income of 483,000, or $0.03 per diluted share, for the same quarter in 2002.

Clean Harbors is a Braintree, Mass. provider of hazardous waste management services.

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