Environmental Resources reveals first- and second-lien term loan talk

By Sara Rosenberg

New York, April 24 - Environmental Resources Management came out with price talk on its $655 million seven-year covenant-light first-lien term loan (B) and $175 million eight-year covenant-light second-lien term loan (CCC+) with its bank meeting on Thursday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with no Libor floor and an original issue discount of 991/2, and the second-lien term loan is talked at Libor plus 700 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.

Commitments are due on May 7, the source added.

Deutsche Bank Securities Inc., BNP Paribas Securities Corp. and HSBC Securities (USA) Inc. are the bookrunners on the $830 million deal, with Deutsche left lead on the first-lien loan and BNP left lead on the second-lien loan.

Proceeds will be used to refinance debt and fund a dividend to shareholders.

Environmental Resources is a provider of environmental, health, safety, risk and social consulting services.

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