The action is in municipal wastewater utility
systems that are hard piped to customers.
non-haz industrial wastewater was the first part of the
waste business to collapse. Almost every TSD has the
capabilty in their Part B. There just isn't much business.
The big generators are in TX or the steel industry.
Some use deep wells, others have installed onsite
treatment. With smaller package units available, almost all
significant generators have shifted to onsite treatment.
Cleanups generate big irregular streams, but they usually
have multiple contaminants that are cheaper to deal
with by incineration or DuPont's Deepwater wastewater
plant. Small volume streams often go to incineration
because of convenience and chemistry isn't a big
Overall, CHLB's wastewater treatment assets may be of a
little value if they're up and running. If this is just
a permit capabilty, then it's worthless because the
return wouldn't justify building.
The industry really can't go anywhere. The
expense to general industry in getting rid of waste is
pure overhead and they cut it wherever and whenever
they can. The only way to make a decent profit will be
to corner the market. On the flip side, the industry
will survive until the EPA goes out of business. I'm
just hoping the stock gets enough life to make it
above book value so I can sell.
the type of consolidation i was talking about
would be extreme:
some money player buying up
sub-title c, incinerators and tsd's cheap enough to write
off goodwill, put up adequate closure reserves, and
write down transportation assets to reasonable useful
lives. close excess capacity and wind up with 80% market
share. (FTC permitting). sounds wild, huh? where else
can this industry go?
Wasteguy - Do you think anyone could be
interested in the Harbors wastewater treatment assets? At
the core of their part B's lie large batch treatment
systems for non-hazardous waste. Could be attractive to
someone wanting a large position in the US market.
1. They were always up for sale. The CEOs and
owners were always talking to each other. Now,there,s
almost no one left. SK is the result of Rollins, Aptus,
Laidlaw, USPCI, SK, SD Meyers, and some Allworth. Philip
gobbled up a bunch and the old Republic gobbled some
more. Besides SK, CHLB and Philips are the only
signicant public players. Heritage is the biggest private.
There's no one left in the old boys club so the sale is
open everyone now.
2. I think the European are
going to go after the infrastructure business in water
and wastewater. Vivendi bought US Filter for this.
The municipal systems are selling to deep pocket
firms because they need capital investment. I think
Vivendi and Suez will pursue the consolidaters like
United Water and PWSC. Who wants to deal with hazwaste.
Vivendi which watch ORYX for a while before buying more
Can there be much more consolidation in
haz? There aren't any players left.
just because they were registered (public issue)doesn't mean they were publicly traded. does antone know where they were placed (public or private) and where they currently reside?
Nope. The 12,5% Senior Notes were a public issue,
which is unusual for High Yield issues today, most of
which come as 144a's.
The Kimball Notes were
public Nebraska muni-bonds.
Who is buying CLHB
i'm not sure but i think that we may be getting
the different clhb debt instruments mixed up. ldw
bought the senior notes (12.5%) to the best of my
knowledge 2~3 years ago. i don't know if they have since
been disposed of by ldw. their are other debt issues
outstanding such as the kimball bonds , etc. i believe the
senior notes, which are due in 2001, were private
Re: Bonds. The bonds were sold by
First Boston in a registered offering in 1994, when
CLHB's stock was much higher and Clinton and Gore were
expected to spend a lot of federal money cleaning up the
environment. The bond issue is small and CLHB is not a
household name, with no research coverage from either the
equity or debt side, and no investment banking
relationships. The bonds probably never trade, or only very
rarely, and the market must be extremely illiquid, with a
wide bid/ask spread. Investment fund holders need to
get market quotes from dealers to mark their
portfolios. Fidelity & Guaranty Life Insurance Co. in
Baltimore is shown holding $3.5 million of the bonds.
Someone could call them up and ask them where they have
their bonds marked.
Re: why a bondholder might
sell: bondholders don't buy bonds because the last
coupon was paid, they buy because they expect the next
coupon to get paid, and so on, and they expect to get
paid their principal at maturity. The corporate bond
market doesn't have the same pyramid scheme/greater fool
market dynamic that you see in the equity
Re: Bond covenants. Their are no restrictions on who
can own CLHB bonds. Anyone can own them. They get
them by buying them. After the company sold the bonds
to First Boston in 1994, it no longer had any
control over who owns them. Period. Still, I doubt LES/SK
or any haz waste operator owns CLHB
Re: Industry consolidation: SK has been an
aggressive, albeit less than successful industry
consolidator. Can anyone else fill this role? Who is a next
likely acquisition candidate, beside our favorite CLHB?
Can someone handicap WSTNA, DRTK, ITX, URS? Thanks.