CLEAN HARBORS INC (CLH): debt financing — Clean Harbors completes HEPACO acquisition for $400M; issues $500M term loan

CLEAN HARBORS INC

Acquired HEPACO from Gryphon Investors for $400M cash; HEPACO had $270M revenue and $36M adj. EBITDA in 2023.
Financed with $500M incremental Term Loans under existing Term Loan Agreement, maturing Oct 2028, SOFR+1.75%.
Expects ~$20M annual cost synergies after first full year, implying 7.1x post-synergy acquisition multiple.
HEPACO expected to add ~$30M Adjusted EBITDA in 2024; guidance to be updated on Q1 earnings call May 1.
Both incremental and existing term loans total $1.48B; prepayable with 1% premium if repriced before Sep 22, 2024.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

CLEAN HARBORS INC incurred term loan of $500.0 million with Goldman Sachs Lending Partners LLC at Term SOFR Rate plus 1.75% or Base Rate plus 0.75% maturing October 8, 2028.

Instrument: term loan
Principal: $500.0 million
Counterparty: Goldman Sachs Lending Partners LLC
Rate: Term SOFR Rate plus 1.75% or Base Rate plus 0.75%
Maturity: October 8, 2028
Event: incurrence

Exact text from the filing

Incremental Facility Amendment No. 5 provided for the incurrence by the Company of additional Term Loans (the “2024 Incremental Term Loans”) under the Term Loan Agreement in the aggregate principal amount of $500.0 million on March 22, 2024.

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

CLEAN HARBORS INC entered into Incremental Facility Amendment No. 5 with Goldman Sachs Lending Partners LLC, as administrative agent and collateral agent, and certain other financial institutions valued at $500.0 million (effective 2024-03-22).

Action: entry
Agreement: credit facility
Counterparty: Goldman Sachs Lending Partners LLC, as administrative agent and collateral agent, and certain other financial institutions
Value: $500.0 million
Effective: 2024-03-22

Exact text from the filing

On March 22, 2024, Clean Harbors, Inc., (the “Company”) a Massachusetts corporation, and substantially all of the Company’s domestic subsidiaries as guarantors, entered into Incremental Facility Amendment No. 5, dated as of March 22, 2024 (“Incremental Facility Amendment No. 5”) to the Company’s existing Credit Agreement, dated as of June 30, 2017 (as previously amended and further amended by Incremental Facility Amendment No. 5, the “Term Loan Agreement”) with Goldman Sachs Lending Partners LLC, as administrative agent and collateral agent (the “Agent”), and certain other financial institutions.

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299 debt financings filed in the last 30 days. Browse all debt financings →

CLEAN HARBORS INC filing history →

Source: SEC EDGAR

accession 0000822818-24-000011

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