Clean Harbors to hold excess cash flow offer for senior secured notes

By Jennifer Chiou

New York, Aug. 11 - Clean Harbors, Inc. is required to offer to buy back its $91.5 million of senior secured notes in the amount of $19.2 million of the excess cash flow generated during the 12-month period ended June 30, according to a 10-Q filing with the Securities and Exchange Commission.

The company must hold the repurchase offer within 120 days of June 30.

If holders do not accept an offer based on the excess cash flow earned through June 30, the excess cash flow will not be included in the amount of excess cash flow earned in subsequent periods. The indenture's requirement to make offers in respect of excess cash flow earned in subsequent 12-month periods will, however, remain in effect.

On Aug. 6, the company announced the redemption of $50 million of the notes on July 28.

On May 12, the company said that it expected to be required to offer to buy back the notes for half of its excess cash flow generated during the 12-month period ending June 30.

Clean Harbors previously said it is required by certain note covenants to apply half its yearly excess cash flow to redeem first-lien loans under its revolving facility and synthetic facility or to make offers for its outstanding senior secured notes.

Clean Harbors issued the notes on June 30, 2004.

Based in Norwell, Mass., Clean Harbors provides environmental and hazardous waste management services.

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