Safetykleen readies launch of €490 million term loan B for Thursday

By Sara Rosenberg

New York, Jan. 18 – Safetykleen (Shilton Bidco Ltd.) is scheduled to hold a lender call at 4 a.m. ET on Thursday to launch a €490 million covenant-lite term loan B due January 2027, according to a market source.

In addition, there will be small group meetings on Friday for the deal.

HSBC and Jefferies are the joint global coordinators and physical bookrunners on the deal. Goldman Sachs, ING, Mizuho, SMBC and Unicredit are joint bookrunners. Wilmington is the agent.

Price talk on the euro term loan is Euribor plus 500 basis points with a 0% floor and an original issue discount in the 95.5 area (+/- 50 bps), the source said.

The company is also getting a pre-placed €120 million equivalent sterling-denominated covenant-lite term loan B due January 2027.

Pricing on the sterling term loan is SOFR plus 575 bps with a 0% floor and it will be issued at a discount that is in line with the euro term loan clearing level, the source continued.

Both term loans have 101 soft call protection for six months.

Commitments are due at 5 a.m. ET on Jan. 26, the source added.

Proceeds will be used to extend and refinance the company’s existing euro first-lien term loan B’s due July 2024.

Apax is the sponsor.

Safetykleen is a provider of full-service industrial parts cleaning.

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