United Site Services Closes Recapitalization

United Site Services closed the final steps of its recapitalization, consisting in the issuance of senior secured first out debt, second out term loans and third out notes, pursuant to privately negotiated transactions and an exchange offer._x000D_
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The company entered into a series of financing transactions that were supported by a vast majority of the capital structure including 100% of ABL and RCF lenders and an ad hoc group of lenders comprising approximately 90% of existing term loans and approximately 55% of existing unsecured notes. Subsequently, the company made offers to non-ad hoc group holders of existing terms loans and existing notes, including an exchange offer to holders of existing notes. The proceeds of the recapitalization were mainly used to repay existing term loans from participating lenders and existing unsecured notes from participating noteholders at a discount, deleveraging the company’s balance sheet and providing critical liquidity for the company’s operational needs through 2030._x000D_
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The company completed the last steps of its recapitalization with the final settlement of its exchange offer. In connection with the recapitalization, the company has issued (i) $447 million principal amount of new first out debt (comprised of $436 million principal amount of first out term loans and $10 million principal amount of first out notes), (ii) $1,779 million principal amount of second out term loans and (iii) $194 million principal amount of third out notes, the proceeds of which were used or will be used to repay and repurchase certain of the company’s existing indebtedness._x000D_
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As a result of the recapitalization, the company has (i) increased its liquidity by approximately $300 million (before giving effect to the use of proceeds and transaction costs and expenses thereof), (ii) amended financial covenants to increase revolving credit facility access, (iii) captured discount on participating debt of over $200 million and (iv) extended maturities of the company’s debt under its ABL credit facility, CF revolving credit facility and participating term loans and notes to April 2030. These transactions position the company for growth and demonstrate the continued support of its key stakeholders._x000D_
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“We are pleased with the successful completion of this recapitalization and the support that it shows for our multi-year growth plan,” James E. Hyman, CEO of United Site Services, said.