Heckmann plans $150 million revolver led by Wells Fargo, Regions

By Sara Rosenberg

New York, March 28 - Heckmann Corp. has received a commitment for a new $150 million five-year revolving credit facility, according to a 424B5 filed with the Securities and Exchange Commission on Wednesday.

Wells Fargo Securities LLC and Regions Capital Markets are the joint bookrunners and joint lead arrangers on the deal.

Pricing on the revolver will range from Libor plus 275 basis points to 400 bps based on total debt to EBITDA.

There is a $100 million accordion feature.

Security is substantially all of the company's assets.

Financial covenants include a maximum total debt leverage ratio, a maximum senior secured debt leverage ratio and a minimum interest coverage ratio.

Proceeds will be used to refinance an existing credit facility and for ongoing working capital and for other general corporate purposes, including funding acquisitions.

Closing on the credit facility is expected to occur upon completion of a $250 million notes offering.

The bonds will be used, along with the sale of 18.2 million shares of common stock, to finance the acquisition of Thermo Fluids Inc.

Heckmann is a Coraopolis, Pa.-based provider of water services for the oil and gas exploration and production industry and a provider of environmental services and waste recycling services.

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