U S Liquids to sell assets, obtains loan extension

New York, Feb. 3 - U S Liquids Inc. said it has agreed to sell various subsidiaries and has obtained an extension to its revolving credit facility.

The sale agreement covers substantially all of the assets of the USL Detroit, USL Florida and USL First Source businesses and substantially all of the assets of the Waste Research business other than the waste processing facility in Macon, Ga. The buyer is EQ-The Environmental Quality Co.

EQ will pay $12.235 million, prior to a post-closing working capital adjustment. The purchase price includes $1.0 million that will be paid to the United States to settle an investigation by the Environmental Protection Agency and the Federal Bureau of Investigation into USL Detroit's Detroit facility.

Remaining proceeds will be used to pay transaction expenses and reduce borrowings under the credit facility.

U S Liquids expects to close the sale by Feb. 9.

U S Liquids also said its lenders have agreed to further amend the revolver, extending the maturity to March 12 and modifying covenants.

Failure to close the sale to EQ by Feb. 13 will be a default under the amended terms.

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