United Site Services Announces Final Closing of its Recapitalization

WESTBOROUGH, Mass., Sept. 26, 2024 /PRNewswire/ -- United Site Services (the "Company") announced the successful closing of the final steps of its recapitalization, consisting in the issuance of senior secured First Out Debt, Second Out Term Loans and Third Out Notes (as such terms and any other defined terms are defined in the Company's previous press releases), pursuant to privately negotiated transactions and an exchange offer.

As previously announced, the Company entered into a series of financing transactions that were supported by a vast majority of the capital structure including 100% of ABL and RCF lenders and an ad hoc group of lenders (the "Ad Hoc Group")  (the "Initial Transactions") comprising approximately 90% of existing term loans and approximately 55% of existing unsecured notes. Subsequently, the Company made  offers to non-Ad Hoc Group holders of existing terms loans and existing notes, including an exchange offer to holders of existing notes (together with the Initial Transactions, the "Recapitalization"). The proceeds of the Recapitalization were mainly used to repay existing term loans from participating lenders and existing unsecured notes from participating noteholders at a discount, deleveraging the Company's balance sheet and providing critical liquidity for the Company's operational needs through 2030.

The Company announces that today it has completed the last steps of its Recapitalization with the final settlement of its exchange offer. In connection with the Recapitalization, the Company has issued (i) $447 million principal amount of new First Out Debt (comprised of $436 million principal amount of First Out Term Loans and $10 million principal amount of First Out Notes), (ii) $1,779 million principal amount of Second Out Term Loans, and (iii) $194 million principal amount of Third Out Notes, the proceeds of which were used or will be used to repay and repurchase certain of the Company's existing indebtedness.

As a result of the Recapitalization , the Company has (i) increased its liquidity by approximately $300 million (before giving effect to the use of proceeds and transaction costs and expenses thereof), (ii) amended financial covenants to increase revolving credit facility access, (iii) captured discount on participating debt of over $200 million, and (iv) extended maturities of the Company's debt under its ABL Credit Facility, CF Revolving Credit Facility, and participating term loans and notes to April 2030.  These transactions position the Company for growth and demonstrate the continued support of its key stakeholders.

"We are pleased with the successful completion of this recapitalization and the support that it shows for our multi-year growth plan," said James E. Hyman, CEO of United Site Services.

Other Information

On September 23, 2024, Moody's, based on its present recovery expectations for the Company's financial instruments following the consummation of the Recapitalization, issued a report confirming a stable outlook for our ratings. S&P has informed the Company that they expect to review the Company's rating after the closing of the Recapitalization and that the proposed capital structure appears to address several credit benefits including higher liquidity, expected reduction in debt and extension of debt maturities. The Company expects S&P's rating to be improved.

This press release is for informational purposes only and does not represent an offer to sell securities or a solicitation to buy securities in the United States or in any other country. This press release is released for disclosure purposes only, in accordance with applicable legislation. It does not constitute marketing material, and should not be interpreted as advertising an offer to sell or soliciting any offer to buy securities issued by the Company in any jurisdiction where it is illegal to do so. This press release to the market is not for distribution in or into or to any person located or resident in any jurisdiction where it is unlawful to release, publish or distribute this announcement.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the U.S. Securities Exchange Act of 1934 that are not based on historical facts and are not assurances of future results. These forward-looking statements are based on management's current expectations and estimates about future events and financial trends, which affect or may affect the Company's businesses and results of operations. The words "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect" and similar words are intended to identify estimates and forward-looking statements. These statements include but are not limited to forward-looking statements about its credit ratings. Although the Company believes that these forward-looking statements are based upon reasonable assumptions, these statements are subject to several risks and uncertainties and are made in light of information currently available to the Company. Estimates and forward-looking statements involve risks and uncertainties and are not guarantees of future performance. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations and the Company's future results may differ materially from those expressed in these estimates and forward-looking statements. All forward-looking statements are expressly qualified in their entirety by this cautionary statement, and you should not place reliance on any forward-looking statement contained in this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events or for any other reason.

About United Site Services

United Site Services is the largest provider of portable sanitation services and complementary site solutions in the United States, providing the largest equipment fleet and deploying a standardized servicing methodology that ensures consistent quality and safety of on-site equipment use. For over 25 years, United Site Services has helped enable job and event site success, successfully managing the complex needs of construction, industrial, and agricultural sites, live events, government and emergency response scenarios. United Site Services is committed to transforming the site services industry by setting new standards in servicing of equipment and customer experience, and to making its customers' on and off-site jobs easier.

Media Contacts
Andrew Merrill / John Perilli
Prosek Partners for United Site Services
Pro-uss@prosek.com

SOURCE United Site Services Inc.