ELGIN, Ill., Dec. 12, 2014 (GLOBE NEWSWIRE) -- Heritage-Crystal Clean, Inc. (the "Company") (Nasdaq: HCCI ) announced today that it has priced an underwritten public offering of 3,100,000 newly issued shares of the Company's common stock at a public offering price of $10.00 per share. The net proceeds to the Company, after the underwriting discount and estimated offering expenses, are expected to be approximately $28.9 million.
The Company has granted the underwriters of the offering an option to purchase an additional 465,000 shares of common stock at the public offering price, less the underwriting discount, during the period ending 30 days from the date of the final prospectus supplement filed in connection with the offering to cover over-allotments, if any.
The Company intends to use the net proceeds from the offering to pay down borrowings made in connection with its recently completed acquisition (the "Acquisition") of FCC Environmental LLC and International Petroleum Corp. of Delaware (together, "FCC Environmental") and to complete the expansion of its used oil re-refinery, with the remaining net proceeds to be used for general corporate purposes, including the potential additional repayment of debt. William Blair & Company, L.L.C. is acting as Lead Book-Running Manager for the offering. Robert W. Baird & Co. Incorporated and Needham & Company, LLC are acting as Passive Bookrunners for the offering.
The closing of the offering is expected to occur on or about December 17, 2014 subject to customary closing conditions.
The common stock will be issued in the United States pursuant to the Company's effective shelf registration statement filed with the U.S. Securities and Exchange Commission. The offering is being made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. A copy of the prospectus supplement and accompanying prospectus relating to the offering may be obtained, when available, from William Blair & Company, L.L.C., Attention Prospectus Department, 222 West Adams Street, Chicago, Illinois 60606, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com .
This news release does not constitute an offer to sell or a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering may be made only by means of a prospectus. Before investing, you should read the prospectus supplement and the accompanying prospectus for information about the Company and the offering.
About Heritage-Crystal Clean, Inc.
Heritage-Crystal Clean, Inc. provides parts cleaning, used oil re-refining, and hazardous and non-hazardous waste services to small and mid-sized customers in both the manufacturing and vehicle service sectors. Our service programs include parts cleaning, containerized waste management, used oil collection and re-refining, vacuum truck services and waste antifreeze collection and recycling. These services help our customers manage their used chemicals and liquid and solid wastes, while also helping to minimize their regulatory burdens. Our customers include businesses involved in vehicle maintenance operations, such as car dealerships, automotive repair shops, and trucking firms, as well as small manufacturers, such as metal product fabricators and printers. Through our used oil re-refining program, we recycle used oil into high quality lubricating base oil, and we are a supplier to firms that produce and market finished lubricants. Heritage-Crystal Clean, Inc. is headquartered in Elgin, Illinois, and serves approximately 125,000 customer locations.
Safe Harbor Statement
All references to the "Company," "we," "our," and "us" refer to Heritage-Crystal Clean, Inc., and its subsidiary, Heritage-Crystal Clean, LLC.
This release contains forward-looking statements that are based upon current management expectations. Generally, the words "aim," "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "project," "should," "will be," "will continue," "will likely result," "would" and similar expressions identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements or industry results to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. These risks, uncertainties and other important factors include, among others: general economic conditions and downturns in the business cycles of automotive repair shops, industrial manufacturing businesses and small businesses in general; increased solvent, fuel and energy costs and volatility in the price of crude oil, the selling price of lubricating base oil, solvent, fuel, energy, and commodity costs; our ability to successfully integrate FCC Environmental and achieve the anticipated synergies from the Acquisition within the expected time period, or at all; our ability to enforce our rights under the FCC Environmental purchase agreement; our ability to pay our debt when due and comply with our debt covenants; our ability to successfully operate our used oil re-refinery and to cost-effectively collect or purchase used oil or generate operating results; our ability to successfully complete our used oil re-refinery expansion and realize the anticipated benefits therefrom within the expected time period, or at all; increased market supply or decreased demand for base oil; further consolidation and/or declines in the United States automotive repair and manufacturing industries; the impact of extensive environmental, health and safety and employment laws and regulations on our business; legislative or regulatory requirements or changes adversely affecting our business; competition in the industrial and hazardous waste services industries and from other used oil re-refineries; claims and involuntary shutdowns relating to our handling of hazardous substances; the value of our used solvents and oil inventory, which may fluctuate significantly; our ability to expand our non-hazardous programs for parts cleaning; our dependency on key employees; our level of indebtedness, which could affect our ability to fulfill our obligations, impede the implementation of our strategy, and expose us to interest rate risk; our ability to effectively manage our extended network of branch locations; the control of The Heritage Group over the Company; and the risks identified in the Company's Annual Report on Form 10-K filed with the SEC on March 3, 2014 and Quarterly Report on Form 10-Q filed with the SEC on October 16, 2014. Given these uncertainties, you are cautioned not to place undue reliance on these forward-looking statements. We assume no obligation to update or revise them or provide reasons why actual results may differ. The information in this release should be read in light of such risks and in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this release.
Mark DeVita, Chief Financial Officer, (847) 836-5670
