Clean Harbors lifts term loan to $500 million, revises OID to 99.875

By Sara Rosenberg

New York, March 6 – Clean Harbors Inc. upsized its fungible incremental term loan B due October 2028 (Ba1/BBB-) to $500 million from $400 million and changed the original issue discount to 99.875 from the 99.75 area, according to a market source.

Pricing on the incremental term loan is SOFR+CSA plus 175 basis points with a 0% floor.

The incremental term loan still has 101 soft call protection for six months and amortization of 1% per annum.

Goldman Sachs Bank USA, JPMorgan Chase Bank, BofA Securities Inc., Citizens, Truist Securities, Stifel and RBC Capital Markets are the arrangers on the deal.

Commitments were scheduled to be due at 1 p.m. ET on Wednesday, accelerated from 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to fund the acquisition of Hepaco from Gryphon Investors for $400 million and, due to the upsizing, for general corporate purposes.

Closing on the acquisition is expected in the first half of this year, subject to regulatory approval and other customary conditions.

Clean Harbors is a Norwell, Mass.-based provider of environmental and industrial services. Hepaco is a Charlotte, N.C.-based provider of specialized environmental and emergency response services.

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