Harsco trims spread on $550 million term loan B to Libor plus 500 bps

By Sara Rosenberg

New York, Oct. 28 – Harsco Corp. reduced pricing on its $550 million seven-year term loan B to Libor plus 500 basis points from Libor plus 550 bps and added a step-down to Libor plus 475 bps at net total leverage of less than 2 times, according to a market source.

Additionally, the original issue discount on the term loan B was tightened to 99 from 98, the source said.

The term loan B still has a 1% Libor floor, 101 soft call protection for one year and amortization of 1% per annum.

The company’s $950 million senior secured credit facility (Ba1/BB/BB+) also includes a $400 million five-year revolver.

Other updates to the deal included outlining the excess cash flow sweep as 50% with step-downs to 25% and 0% at 2 times and 1.5 times senior secured net leverage, respectively, increasing the revolver size basket to $425 million from $400 million, increasing the non-credit parties debt to $75 million from $50 million, lifting the capital lease basket to $35 million from $25 million and raising the asset sale reinvestment carve-out to $150 million from $100 million.

Recommitments were due at noon ET on Friday, the source added.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, US Bank and KeyBanc Capital Markets are the leads on the deal.

Proceeds will be used to amend and extend an existing credit facility and redeem 5¾% senior notes due 2018.

Harsco is a Camp Hill, Pa.-based diversified engineered products and services company.

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