Safety-Kleen sets IPO terms

Plano, Texas-based Safety-Kleen, an oil recycling and environmental services provider, has set the terms for its planned initial public offering.

In a filing with the U.S. Securities and Exchange Commission, the company said it plans to offer 21.9 million shares at $15 to $17 per share, raising up to 372.3 million. That's up from the $300 million indicated in the original filing in May (see Safety-Kleen heads back to the public market).

Safety-Kleen's return to public market comes more than four years after the company emerged from bankruptcy protection, and follows a major financial recapitalization of the group in 2006.

Insiders, including Highland Capital Management, Contrarian Capital Management, JPMorgan Chase, and the GSC Group, will be selling 17.2 million shares in the IPO.

Highland currently holds a 38 percent stake in Safety-Kleen, with Contrarian owning 19.8 percent, JPMorgan Chase holding 11.1 percent, and GSC owning 9.2 percent. After the offering, Highland's stake will drop to 17.6 percent, with Contrarian holding 9.2 percent, JPMorgan holding 7.2 percent, and GSC with 4.3.

Safety-Kleen plans to use its proceeds from the share sale for general corporate purposes, including possible acquisitions.

Merrill Lynch and JP Morgan are serving as co-lead underwriters on the planned share sale, which is expected to trade on the New York Stock Exchange under the symbol "SK."