Safetykleen allocates €660 million term loan at Euribor plus 400 bps

By Sara Rosenberg

New York, Jan. 31 – Safetykleen (Shilton Bidco Ltd.) allocated on Wednesday its €660 million covenant-lite term loan B due January 2027, according to a market source.

Pricing on the term loan is Euribor plus 400 basis points with 25 bps step-downs at 4.75x and 4.25x leverage and a 0% floor. The debt was issued at par and has 101 soft call protection for six months.

During syndication, the term loan was upsized from €556 million and pricing was set at the low end of the Euribor plus 400 bps to 425 bps talk.

HSBC and Jefferies are the joint physical bookrunners on the deal. BNP Paribas, ING, JPMorgan, Mizuho, SMBC and UniCredit are the joint bookrunners. Wilmington is the agent.

Proceeds will be used to reprice an existing €556 million term loan due January 2027 down from Euribor plus 500 bps with 25 bps pricing step-downs at 4.75x and 4.25x leverage and a 0% floor, and the funds from the recent upsizing will be used to partially repay a sterling term loan B due January 2027 that is priced at Sonia plus 575 bps.

Apax is the sponsor.

Safetykleen is a provider of full-service industrial parts cleaning.

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