As part of a plan to significantly reduce Safety-Kleen’s annual interest expense and enhance the company’s capital structure, the company has completed a major recapitalization.
Under the recapitalization, which included a US$100-million rights offering to purchase the company’s common stock and a new, six-year $395-million debt facility, Safety-Kleen eliminated its senior subordinated debt, repaid its current bank credit facilities issued in 2005, and redeemed its preferred stock. The new debt facilities increase the company’s financial flexibility and reduce interest obligations going forward.
“This is a very significant step in enhancing Safety-Kleen’s current financial strength and future profitability,” said Frederick J. Florjancic, Jr., the company’s president and CEO. “This transaction restructures our long-term debt, which saves $27-million annually in interest, and allows us to continue increasing our profitability and consider acquisitions as part of our growth strategy.”
Mr. Florjancic noted that 97 per cent of the holders of the company’s common stock elected to participate in the rights offering and purchase additional equity in the company. “We see that as a strong vote of confidence in Safety-Kleen’s future,” he said.
Safety-Kleen is a leading North American provider of industrial oil collection and re-refining, parts cleaner services, and industrial waste management. The company provides a complete set of responsible re-refining, cleaning, and environmental solutions through its fully integrated branch network designed to collect, process, recycle, re-refine, and dispose of a wide range of both hazardous and non-hazardous waste streams in the United States, Canada and Puerto Rico.
For further information, contact John Kyte at 972-265-2030 or visit http://www.safety-kleen.com