Harsco revolver amendments pave way for rail business sale

Chicago, Aug. 29 – Harsco Corp. reported that it amended its credit agreement on Aug. 29 with Bank of America, NA listed as administrative agent and collateral agent, according to an 8-K filing with the Securities and Exchange Commission.

The 12th amendment relates to the $700 million revolver under the senior secured credit facility.

It increases certain levels in the total net leverage covenant and reduces the ratio under the interest coverage covenant.

The company’s total net leverage is capped at 5.5x consolidated adjusted EBITDA through the end of 2023, with quarterly decreases, reaching 4x in the last quarter of 2024.

The total net leverage ratio covenant applicable to the third quarter of 2024 and earlier is subject to a 0.5x decrease upon a sale of the company’s rail business, if completed.

The company’s required coverage of consolidated interest charges is set at a minimum of 2.75x of consolidated adjusted EBITDA through the end of 2024 (subject to an increase to 3x upon a sale of the company’s rail business (if completed)), and leveling at 3x for the first quarter in 2025 and thereafter.

A new pricing tier has also been added. Interest will now be between Libor plus 150 basis points and 275 bps, subject to a 0% Libor floor.

Harsco is a Camp Hill, Pa.-based industrial company providing engineered products and industrial services to the steel, rail and energy industries.

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