Heritage-Crystal completes $140 million amended credit facility

By Tali Rackner

Norfolk, Va., Oct. 16 – Heritage-Crystal Clean, LLC entered into a $140 million bank facility through a first and second amendment to its amended and restated credit agreement with Bank of America, NA, according to an 8-K filing with the Securities and Exchange Commission.

The amendment provides up to $140 million of borrowings, $80 million of term A loans that will mature on Feb. 5, 2018 and $60 million of revolving loans.

Borrowings bear interest at Libor plus 200 basis points to 300 bps, depending on the company’s total leverage ratio.

The credit agreement also contains customary terms and provisions, including maintaining a minimum interest coverage ratio of 3.5 to 1.0 and a maximum total leverage of 4 to 1 through fiscal 2014, 3.75 to 1.0 in the first quarter of fiscal 2015, 3.5 to 1.0 for the second quarter of fiscal 2015, 3.25 to 1.0 for the third quarter of fiscal 2015 and 3.0 to 1.0 thereafter.

There is also a capital expenditures covenant limiting capital expenditures to $22 million in fiscal 2014 and $15 million in each fiscal year thereafter.

As of the Oct. 16 effective date, the company has $80 million outstanding under the term A loan portion of the facility and $12 million outstanding under the revolving portion.

Heritage-Crystal is an Elgin, Ill.-based provider of parts cleaning and containerized waste services.

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