Clean Harbors gets consents for 69.2% of $490 million 7 5/8% notes

By Toni Weeks

San Diego, July 27 - Clean Harbors, Inc. said it received tenders and consents from holders of $339.1 million, or 69.2%, of the company's $490 million principal amount of 7 5/8% senior secured notes due 2016 by the consent date, 5 p.m. ET on July 27.

Based on the consents received, Clean Harbors expects to enter into a supplemental indenture that will eliminate substantially all of the restrictive covenants and events of default and reduce the notice period required to redeem the notes. The supplemental indenture will become operative upon payment for the notes tendered by the consent date, and the company expects to make this payment on July 30.

The company will pay $1,041.38 per $1,000 principal amount of notes, which includes a consent premium of $30.00 per $1,000 of notes for the notes tendered by the consent date.

Holders who tender their notes after the consent date will receive the base payment of $1,011.38 per $1,000 principal amount.

The company also will pay accrued interest to but not including the settlement date.

The tender offer began July 16 and will end at midnight ET on Aug. 10.

The company said it plans to redeem on Aug. 15 any notes that remain outstanding after the offer at a price of $1,038.13 per $1,000 principal amount plus accrued interest.

Funding for the offer will come from the company's concurrent issue of senior notes. The tender offer is conditioned on the raising of at least $600 million of proceeds from the new issue. The company priced an upsized $800 million issue of senior notes due Aug. 1, 2020 on July 17.

Goldman Sachs & Co. (800 828-3182 and 212 357-0345) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 794-2200 or 212 430-3774) is the information agent.

Clean Harbors is Norwell, Mass.-based provider of environmental, energy and industrial services.

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