Safety-Kleen Closes Re-Financing Package
PLANO, TX – Safety-Kleen Systems, Inc., today announced that it has closed a refinancing package initiated in January, including securing an increase in the company's revolving credit line to $225 million and a renewal of its term loan at $225 million.
Safety-Kleen Chief Financial Officer Jeff Richard said the company has amended and extended its existing loan facility, which was due to mature in August 2012, for five years and the new maturity date for both the revolver and term loan is February 21, 2017.
With the Company's revolver increased from $100 million to $225 million, Richard said the amended revolver now includes a $100 million letter of credit sub-facility, which allowed the Company to terminate its existing synthetic letter of credit facility. The revolver is currently undrawn.
The amended terms also include releasing the company's Canadian subsidiary from its guaranty and security obligations, adding additional capital expenditure flexibility to allow for up to $100 million of new oil re-refining capacity, adding acquisition flexibility of up to $100 million annually, and giving the company flexibility to purchase up to $50 million of its shares and to upsize the credit agreement by $75 million.
"These new, extended credit facilities provide us the capital and the flexibility to continue investing and growing the company," Richard said. "For example, we are very excited about increasing our used oil re-refining capacity and continuing to meet the ever-growing need for recycling and re-refining used oil, as well as meeting the market demand for base oils and our 'green' EcoPower motor oil."
Safety-Kleen is a leading North American used oil recycling and re-refining, parts cleaning and environmental solutions company, with approximately 4,300 employees serving more than 270,000 customer locations in the United States, Canada and Puerto Rico. Safety-Kleen provides a broad set of environmentally-responsible products and services that keep North American businesses in balance with the environment. For more information, please visit www.safety-kleen.com or call (800) 669-5740.