Harsco launches $546 million term loan at Libor plus 325 bps

By Sara Rosenberg

New York, Nov. 29 – Harsco Corp. launched on Wednesday its $546 million senior secured term loan (Ba1/BB+/BB+) due December 2024 with price talk of Libor plus 325 basis points with a 25 bps step-down if net leverage is below 2 times, a 1% Libor floor and an original issue discount of 99.75, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Goldman Sachs Bank USA, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Bank of America Merrill Lynch, RBC Capital Markets, U.S. Bank and KeyBanc Capital Markets are the joint bookrunners and joint lead arrangers on the deal. Co-managers include PNC, Fifth Third and ING.

Commitments are due on Tuesday, the source added.

Proceeds will be used amend and extend and reprice an existing term loan due November 2023 that is priced at Libor plus 500 bps with a 25 bps step-down if net leverage is below 2 times and a 1% Libor floor.

Harsco is a Camp Hill, Pa.-based diversified industrial company providing a range of onsite services and engineered products to the global steel, energy and railway sectors.

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