Clean Harbors has launched a private offering of $600 million of senior notes expected to mature in 2034, with the proceeds primarily intended to finance its previously announced acquisitions of environmental services businesses EnviroServe and ES&H.
The Massachusetts-based environmental and industrial services company plans to use a portion of the net proceeds to finance the purchase price of EnviroServe, a national provider of environmental and waste management services.
Clean Harbors plans to use the remaining proceeds to repay borrowings under its revolving credit facility that were used to partially fund its acquisition of ES&H.
The financing therefore supports Clean Harbors’ broader acquisition strategy as it adds businesses to a platform spanning hazardous waste management, emergency response, industrial services and recycling.
The notes offering is not contingent on either acquisition being completed. If one of the transactions does not close, Clean Harbors said it intends to use any remaining proceeds for general corporate purposes.
The securities are being offered to qualified institutional buyers under Rule 144A and to certain investors outside the U.S. under Regulation S. They will not initially be registered under the Securities Act.
Clean Harbors serves customers across industries including chemicals, manufacturing, refining and government.
Its services include end-to-end hazardous waste management, emergency spill response, industrial cleaning and maintenance, and recycling. The company’s Safety-Kleen subsidiary also provides parts washers and environmental services and operates what Clean Harbors describes as North America’s largest re-refining and recycling operation for used oil.
Founded in 1980, Clean Harbors operates across the U.S., Canada, Mexico, Puerto Rico and India.
