Heckmann in talks to expand credit facility for Badlands acquisition

By Sara Rosenberg

New York, Sept. 4 - Heckmann Corp. is in discussions with its existing lending group to increase the size of its credit facility in connection with its acquisition of Badlands Energy LLC (Power Fuels), according to a news release.

Under the agreement, Badlands Energy is being purchased for $125 million in cash and 95 million shares of Heckmann common stock. Additionally, Heckmann will assume or refinance about $150 million in Badlands Energy's debt.

Pro-forma for the transaction, after giving effect to the cash and refinanced debt, the combined company's leverage ratio would be about 2.6 times trailing 12-month adjusted EBITDA as of June 30.

Closing is expected in the fourth quarter, subject to regulatory approvals and approval by Heckmann's stockholders.

Heckmann is a Coraopolis, Pa.-based environmental services company focused on the movement, treatment and disposal of water generated by energy companies. Badlands Energy is a N.D.-based environmental services provider focused on the transportation, treatment, recycling and disposal of fluids.

© 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.