Harsco cuts spread on $546 million term loan to Libor plus 300 bps

By Sara Rosenberg

New York, Dec. 6 – Harsco Corp. reduced pricing on its $546 million senior secured term loan (Ba1/BB+/BB+) due December 2024 to Libor plus 300 basis points from Libor plus 325 bps, according to a market source.

Also, the company removed from the term loan a 25 bps pricing step-down if net leverage is below 2 times, and tightened the issue price to par from 99.75, the source said.

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

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.

Recommitments were scheduled to be due at 5 p.m. ET on Wednesday, 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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