Wheelabrator reworks term loan C and revolver sizes, updates pricing

By Sara Rosenberg

New York, Oct. 15 – Wheelabrator Technologies Inc. (Granite Acquisition Inc.) downsized its first-lien covenant-light term loan C (Ba2/BB-) to $55 million from $75 million and upsized its five-year revolver (Ba2/BB-) to $145 million from $125 million, according to a market source.

Also, pricing on the term loan C, as well as on a $1.25 billion seven-year first-lien covenant-light term loan B (Ba2/BB-), firmed at Libor plus 375 basis points, the wide end of the Libor plus 350 bps to 375 bps talk, and the 101 soft call protection on the first-lien debt was extended to one year from six months, the source said.

The term loan B and term loan C still have a 1% Libor floor and an original issue discount of 99.

In addition, the company finalized pricing on its $260 million eight-year second-lien covenant-light term loan (B1/B) at Libor plus 700 bps, the low end of the Libor plus 700 bps to 725 bps talk, the source said.

As before, the second-lien term loan has a 1% Libor floor, a discount of 99 and hard call protection of 102 in year one and 101 in year two.

Deutsche Bank Securities Inc., Barclays and BNP Paribas Securities Corp. are the bookrunners on the $1.71 billion credit facility.

Proceeds will be used to help fund the buyout of the company by Energy Capital Partners for $1.94 billion in cash from Waste Management Inc.

Other funds for the transaction will come from about $500 million in equity.

Closing is expected late this year, subject to Federal Energy Regulatory Commission approval and other customary conditions.

Wheelabrator is a Hampton, N.H.-based owner and operator of waste-to-energy facilities and independent power-producing facilities.

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