Company: CLH
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000822818-25-000019
Chunk: 75

Company: CLEAN HARBORS INC
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 75
---
 no material changes to the arrangements described therein. As of March 31, 2025 and December 31, 2024, the estimated fair value of the Company's outstanding long-term debt, including the current portion, was $2.8 billion. The Company's estimates of fair value of its long-term debt, including the current portion, are based on quoted market prices or other available market data which are considered Level 2 measures according to the fair value hierarchy. Level 2 utilizes quoted market prices in markets that are not active, broker or dealer quotations or alternative pricing sources with reasonable levels of price transparency for similar assets and liabilities. The Company maintains a $600.0 million revolving credit facility under which the Company had no outstanding loan balance as of March 31, 2025 or December 31, 2024 . As of March 31, 2025, the Company had $462.4 million available to borrow under the revolving credit facility and outstanding letters of credit were $137.6 million.Cash Flow HedgesThe Company’s strategy to hedge against fluctuations in variable interest rates involves entering into interest rate derivative agreements. 

13

Although the interest rate on the Company’s senior secured term loans is variable, the Company has effectively fixed the interest rate on $600.0 million aggregate principal amount of the term loans outstanding by entering into interest rate swap agreements in 2022 with a notional amount of $600.0 million (“2022 Swaps”). Under the terms of the 2022 Swaps, the Company receives interest based on the one-month SOFR index and pays interest at a weighted annual interest rate of 1.965%, resulting in an effective interest rate of 3.71% when considering the 1.75% interest rate margin of the term loans. For the three months ended March 31, 2025, including the 1.75% interest rate margin, the effective annual interest rate of this $600.0 million of principal debt was approximately 3.71%. The 2022 Swaps will expire on September 30, 2027.The Company recognizes the derivative instruments as either assets or liabilities on the balance sheet at fair value. As of March 31, 2025 and December 31, 2024, the Company has recorded a derivative asset with a fair value of $24.6 million and $32.4 million, respectively, within Other long-term assets on the consolidated balance sheets in connection with