Clean Harbors, Inc. announced on June 28, 2024, the company and one of the company?s Canadian subsidiaries (the Canadian Borrower) entered into a seventh amended and restated credit agreement (the Amended Credit Agreement) with Bank of America, N.A. ?BofA), as administrative agent (the Agent), and the lenders party to the Amended Credit Agreement. The Amended Credit Agreement amends and restates the sixth amended and restated credit agreement dated as of October 28, 2020, as previously amended (the Prior Credit Agreement), among the company, the Canadian Borrower, BofA, as Agent, and the lenders party thereto. Upon the closing of the Amended Credit Agreement, there were no loans outstanding under the Prior Credit Agreement, but there were $136.4 million of outstanding letters of credit which will continue to remain outstanding under the Amended Credit Agreement.

The Amended Credit Agreement provides for an increased revolving credit facility in a maximum amount of $600.0 million. Under the facility the Company has the right to obtain revolving loans and letters of credit for a combined maximum of up to $550.0 million (with a sub-limit of $250.0 million for letters of credit) and the Canadian Borrower has the right to obtain revolving loans and letters of credit for a combined maximum of up to $50.0 million (with a sub-limit for letters of credit equal to lesser of (i) $75.0 million and (ii) the then combined maximum for loans and letters of credit available to the Canadian Borrower). Availability under the U.S. line is subject to a borrowing base basically comprised of 85% of the eligible accounts receivable of the Company and its U.S. subsidiaries plus 100% of cash deposited in a controlled account with the Agent, and availability under the Canadian line is subject to a borrowing base basically comprised of 85% of the eligible accounts receivable of the company?s Canadian subsidiaries plus 100% of cash deposited in a controlled account with the Agent?s Canadian affiliate.

Subject to certain conditions, the facility will expire on June 28, 2029. Borrowings by the company under the revolving credit facility will bear interest at a rate of, at the company?s option, either (i) Term SOFR, plus 1.5% per annum, or (ii) the U.S. Base Rate (as defined), plus 0.5% per annum, and borrowings by the Canadian Borrower will bear interest, at the Company?s option, at either (i) Term CORRA, plus 1.5% per annum, (ii) the Canadian Prime Rate (as defined), plus 0.5% per annum, or (iii) the Canadian Base Rate (as defined), plus 0.5% per annum. There is also an unused line fee, calculated on the then unused portion of the lenders?

$600.0 million maximum commitments, ranging from 0.25% to 0.375% per annum of the unused commitments. For outstanding letters of credit, the Company will pay to the lenders a fee equal to the 1.5% per annum margin for Term SOFR Loans or Term CORRA Loans described above, and to the issuing banks a standard fronting fee and customary fees and charges in connection with all amendments, extensions, draws and other actions with respect to letters of credit. In the event that Term SOFR or Term CORRA ceases to be available during the term of the revolving credit facility, the Amended Credit Agreement provides procedures to determine successor rates.