Clean Harbors does not plan to use $475 million term loan commitment

By Sara Rosenberg

New York, Nov. 26 - Clean Harbors Inc. said in a 424B5 filed with the Securities and Exchange Commission on Monday that it will likely not draw on its $475 million seven-year covenant-light senior secured term loan commitment.

The term loan would have been used to help fund the acquisition of Safety-Kleen Inc., but now financing is expected to come from a $550 million senior notes offering and the public offering of 6 million shares of common stock.

Goldman Sachs Bank USA was going to lead the term loan that was expected to be priced at Libor plus 300 basis points with a 1% Libor floor and would have included 101 soft call protection for one year.

Under the agreement, Safety-Kleen, a Richardson, Texas-based re-refiner and recycler of used oil and a provider of parts cleaning and environmental services, is being purchased for $1.25 billion in cash from a group of investors including Highland Capital Management LP.

Closing is expected by year-end, subject to U.S. and Canadian regulatory approvals and customary conditions

Clean Harbors is a Norwell, Mass.-based provider of environmental, energy and industrial services.

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