Heritage-Crystal talks $600 million term loan at SOFR plus 525 bps

By Sara Rosenberg

New York, Sept. 26 – Heritage-Crystal Clean Inc. (JFL-Tiger Acquisition Co. Inc.) launched on Tuesday its $600 million seven-year first-lien term loan with price talk of SOFR plus 525 basis points with a 0.5% floor and an original issue discount of 97 to 97.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $700 million of credit facilities (B) also include a $100 million five-year revolver.

Jefferies Finance LLC and SMBC are the arrangers on the deal.

Commitments are due at 10 a.m. ET on Oct. 6.

Proceeds will be used to help fund the buyout of the company by J.F. Lehman & Co. for $45.50 per share in cash. The transaction values the company at about $1.2 billion.

Other funds for the transaction will come from up to $551.4 million of equity.

Closing is expected in the fourth quarter, subject to customary conditions, including approval by shareholders.

Heritage-Crystal Clean is a Hoffman Estates, Ill.-based provider of provider of specialized environmental and waste management services.

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