Citigroup, PNC Bank, Goldman Sachs Bank, Bank of America, BMO Harris Bank, HSBC Bank, Royal Bank of Canada, Fifth Third Bank, The Huntington National Bank, Keybank, ING Bank, Truist Bank, Bank of the West and Santander Bank acted as joint lead bookrunners and joint lead arrangers for a new $280 term loan facility for Harsco Corporation. The new term loan was raised as a new tranche of loans under Harsco’s existing senior secured credit facilities.
The availability of the new term loans is subject to customary funding conditions, including the substantially concurrent consummation of Harsco’s previously announced acquisition of the Stericycle Environmental Solutions business. Harsco will draw on the new term loans upon the closing of the acquisition, and the new term loans, along with Harsco’s revolving credit facility as had been previously anticipated, will be applied to finance the acquisition and to pay related transaction fees and expenses. Harsco is waiting on regulatory approval for the acquisition.
Borrowings under the new term loans will bear interest at a rate per annum ranging from 150 to 225 basis points over adjusted LIBOR. The new term loans will mature on June 28, 2024. Harsco also has entered into an amendment to its existing credit facility. The amendment amends certain covenants in the credit facility and is intended to provide the company with increased operating flexibility.
“We are pleased to further improve our financial flexibility through this amendment,” said Pete Minan, senior vice president and CFO of Harsco, said. “This transaction further strengthens Harsco’s financial position by providing term loan financing for the ESOL acquisition and preserves significant revolving credit capacity. In addition, we are extremely pleased with the overwhelming support of our bank group, as commitments were significantly oversubscribed. Overall, this successful transaction reflects the positive underlying changes within Harsco over the past few years.”
Harsco Corporation provides environmental solutions for industrial and specialty waste streams and technologies for the rail sector.