Stericycle closes on $1.5 billion five-year term loan agreement

By Wendy Van Sickle

Columbus, Ohio, Aug. 27 – Stericycle, Inc. entered into a $1.5 billion five-year term loan agreement on Aug. 21, according to an 8-K filed with the Securities and Exchange Commission.

The facility has leverage-based interest of Libor plus 100 basis points to 200 bps with initial interest at Libor plus 137.5 bps.

Proceeds will partially fund the company’s acquisition of Shred-it International ULC, Shred-it JV LP, Boost GP Corp. and Boost Holdings LP and their subsidiaries.

The facility matures on Aug. 21, 2020.

Bank of America Merrill Lynch, Goldman Sachs Bank USA, HSBC Bank USA, NA and J.P. Morgan Securities LLC acted as lead arrangers and bookrunners; Bank of America, NA as administrative agent; Goldman Sachs Bank USA, HSBC Bank USA, NA and JPMorgan Chase Bank, NA as co-syndication agents; and Santander Bank, NA, Sumitomo Mitsui Banking Corp., Union Bank, NA and U.S. Bank, NA as co-documentation agents.

The company must maintain a minimum consolidated interest coverage ratio of 3 to 1 at the end of any quarter and a maximum consolidated leverage ratio of 4.35 to 1 until the last day of the first fiscal quarter ending after the first anniversary of the closing of the facility. After that the company must maintain a maximum consolidated leverage ratio of 3.75 to 1.

The provider of medical waste collection, transportation, treatment and disposal services and safety and compliance programs is based in Lake Forest, Ill.

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