Pittsburgh-based Heckmann Corporation said April 5 that it has priced its previously announced offering of $250 million in aggregate principal amount of 9.875% senior notes due 2018 to be sold in a private placement to qualified institutional buyers within the United States and to non-US persons outside of the United States. The sale of the senior notes is expected to be completed on April 10, 2012, subject to customary closing conditions.
The net proceeds from the senior notes offering will be used to finance the $227.5 million cash portion of the purchase price of its previously announced acquisition of TFI Holdings, Inc. and Thermo Fluids Inc. (collectively, TFI), with the remaining net proceeds to be used to repay debt under its existing credit facility.
The senior notes to be offered have not been registered under the United States Securities Act of 1933, as amended (the Securities Act) or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and state securities laws. The senior notes are expected to be eligible for resale by the initial purchasers thereof, pursuant to Rule 144A and Regulation S under the Securities Act.
Jefferies acted as lead left bookrunner on Heckmann’s $250 million senior notes offering. Last week, Jefferies acted as joint bookrunner on Heckmann’s $80 million common stock offering. So far this year, Jefferies’ energy group has raised around $4.3 billion in debt and equity capital and has completed strategic advisory assignments with aggregate value of approximately $10.8 billion.
Heckmann Corporation is a services-based company focused on total water solutions for shale or unconventional oil and gas exploration. Heckmann’s water solutions segment is called Heckmann Water Resources, or HWR, and includes water disposal, trucking, fluids handling, treatment and pipeline transport facilities, and water infrastructure services for oil and gas exploration and production companies. Through these operations, HWR offers an integrated and efficient full service water program for hydraulic fracturing operations.