Heritage-Crystal lifts term loan to $620 million, trims pricing

By Sara Rosenberg

New York, Oct. 5 – Heritage-Crystal Clean Inc. (JFL-Tiger Acquisition Co. Inc.) upsized its seven-year first-lien term loan to $620 million from $600 million and reduced pricing to SOFR plus 500 basis points from SOFR plus 525 bps, according to a market source.

Also, the original issue discount on the term loan firmed at 97.5, the tight end of the 97 to 97.5 talk, the source said.

The term loan still has a 0.5% floor and 101 soft call protection for six months.

The company’s now $720 million of credit facilities, up from $700 million, also include a $100 million five-year revolver.

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

Proceeds will be used with up to $551.4 million of equity to fund the buyout of the company by J.F. Lehman & Co. for $45.50 per share in cash and, due to the upsizing, to add cash to the balance sheet for general corporate purposes. The transaction values the company at about $1.2 billion.

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 specialized environmental and waste management services.

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