"This is another significant step forward as Safety-Kleen continues its turnaround," Frederick J. Florjancic Jr., Safety-Kleen president and chief executive officer, says. "Recapitalizing the company's debt structure will save us approximately $17 million in interest annually and helps provide the financial flexibility we need to continue to invest in the company and drive future growth."
The proceeds of the new $350 million senior secured credit facility were used to repay the Safety-Kleen’s pre-existing $295 million credit facility, as well as transaction fees and expenses, including a prepayment premium. The new credit facility includes a $100 million asset-based revolving loan, secured by accounts receivable and inventory, a $150 million term loan and a $100 million pre-funded letter of credit facility. Deutsche Bank Securities Inc. and Credit Suisse First Boston acted as joint lead arrangers on the refinancing.
Safety-Kleen, a privately held company, is a leading parts cleaner, industrial waste management and oil recycling and re-refining company in North America, with approximately 4,500 employees serving hundreds of thousands of customers in the United States, Canada and Puerto Rico.