New Issue: Heckmann prices $250 million 9 7/8% six-year notes to yield 10%

By Paul A. Harris

Portland, Ore., April 4 - Heckmann Corp. priced a $250 million issue of 9 7/8% senior notes due April 15, 2018 (Caa1/B-) at 99.442 to yield 10% on Wednesday, according to a syndicate source.

The yield printed 50 basis points higher than the wide end of the 9¼% to 9½% yield talk.

Jefferies & Co. Inc. was the left bookrunner. Credit Suisse Securities (USA) LLC and Wells Fargo Securities LLC were the joint bookrunners.

Proceeds, along with proceeds from a concurrent equity offering, will be used to finance the acquisition of Thermo Fluids Inc.

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

Issuer:	Heckmann Corp.
Face amount:	$250 million
Proceeds:	$248,605,000
Maturity:	April 15, 2018
Securities:	Senior notes
Left bookrunner:	Jefferies & Co. Inc.
Joint bookrunners:	Credit Suisse Securities (USA) LLC, Wells Fargo Securities LLC
Coupon:	9 7/8%
Price:	99.442
Yield:	10%
Call features:	Make-whole at Treasuries plus 50 bps until April 15, 2015, then callable at 104.938, 102.469, par on and after April 15, 2017
Equity clawback:	35% at 109.875 until to April 15, 2015
Change-of-control put:	101%
Trade date:	April 4
Settlement date:	April 10
Ratings:	Moody's: Caa1
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	9¼% to 9½%
Marketing:	Roadshow

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.