By Abigail W. Adams
Portland, Me., June 12 – Harsco Corp. priced a $500 million offering of eight-year senior notes (Ba2/BB-/BB) at par to yield 5¾% on Wednesday, according to a market source.
Pricing came in line with official talk in the 5 7/8% area.
Goldman Sachs & Co. LLC is the left bookrunner for the Rule 144A and Regulation S for life offering.
Citigroup Global Markets Inc., BofA Securities Inc., BMO Capital Markets Corp., HSBC Securities (USA) Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and KeyBanc Capital Markets LLC are the joint bookrunners.
The notes become callable on July 31, 2022 at 102.875.
There is an equity clawback of up to 40% at 105.75 until July 31, 2022 and a poison put of 101.
Proceeds, along with a draw on its revolving credit facility, will be used to fund the acquisition of Clean Earth Inc. from Compass Group Diversified Holdings LLC.
Harsco is a Camp Hill, Pa.-based provider of diversified industrial services focused on the steel, aluminum, energy and railway sectors.
Clean Earth is a Hatboro, Pa.-based specialty waste processing company.
| Issuer: | Harsco Corp.
|
| Amount: | $500 million
|
| Maturity: | July 31, 2027
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC (left), Citigroup Global Markets Inc., BofA Securities Inc., BMO Capital Markets Corp., HSBC Securities (USA) Inc., RBC Capital Markets LLC, U.S. Bancorp Investments Inc. and KeyBanc Capital Markets LLC
|
| Co-managers: | Fifth Third Bank, PNC Capital Markets LLC and ING Financial Markets LLC
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 369 bps
|
| Call protection: | First call on July 31, 2022 at 102.875
|
| Trade date: | June 12
|
| Settlement date: | June 28
|
| Ratings: | Moody's: Ba2
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5 7/8% area
|
| Marketing: | Roadshow
|
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