US Ecology Announces Closing of Stablex Hazardous Waste Facility Acquisition
Company Enters Into a New $95 Million Credit Agreement
US Ecology, Inc. (NASDAQ: ECOL) ('the Company') today announced that on October 31, 2010, it completed its previously announced acquisition of Stablex Canada Inc. ('Stablex'), a leading North American provider of hazardous waste services, for $80 million Canadian dollars in cash.
Stablex operates a permitted hazardous waste processing and disposal facility in Blainville, Québec, northwest of Montreal, Quebec in Canada. The Stablex facility principally serves the eastern Canadian and northeastern U.S. industrial markets utilizing proprietary state-of-the-art technology to treat a wide range of hazardous waste. The acquisition was funded with cash on hand and borrowings under a new $75 million reducing revolving line of credit facility with Wells Fargo National Association ('Wells Fargo').
The $75 million reducing revolving line is part of an aggregate $95 million credit agreement entered into with Wells Fargo on October 29, 2010. In addition to the new $75 million reducing revolving line of credit, which has a maturity date of November 1, 2015, the credit agreement provides for a $20 million revolving line of credit with a maturity date of June 15, 2013, which replaces the prior $20 million line of credit.
Further details regarding these transactions can be found in our Current Report on Form 8-K filed with the Securities and Exchange Commission on November 1, 2010.