By Cristal Cody
Tupelo, Miss., June 11 - GFL Environmental Corp. sold C$200 million of five-year senior notes at par to yield 7½%, in line with guidance, in a Regulation S and Rule 144A private placement in Canada on Tuesday, according to an informed source.
The notes (/B+//DBRS: B) priced at a spread of 584.2 basis points over the interpolated Canada bond curve.
BMO Capital Markets Corp. and Scotia Capital Inc. were the bookrunners.
The notes are unconditionally guaranteed by the company's current and future restricted subsidiaries.
The issue has an investor put at 101%.
The notes are redeemable in 2015 at 105.625, in 2016 at 103.75 and in 2017 and thereafter at par.
The Pickering, Ont.-based environmental services company plans to use the proceeds to repay existing debt, to fund growth initiatives and for general corporate purposes.
| Issuer: | GFL Environmental Corp.
|
| Guarantor: | Current and future restricted subsidiaries
|
| Amount: | C$200 million
|
| Maturity: | June 18, 2018
|
| Securities: | Senior notes
|
| Bookrunners: | BMO Capital Markets Corp., Scotia Capital Inc.
|
| Co-managers: | Credit Suisse Securities (USA) LLC, TD Securities Inc.
|
| Coupon: | 7½%
|
| Price: | Par
|
| Yield: | 7½%
|
| Spread: | 584.2 bps over interpolated Canada bond curve
|
| Call feature: | 2015 at 105.625; 2016 at 103.75; and in 2017 and thereafter at par
|
| Put option: | 101%
|
| Pricing date: | June 11
|
| Settlement date: | June 18
|
| Ratings: | Standard & Poor's: B+
|
| DBRS: B
|
| Distribution: | Regulation S, Rule 144A, Canada private placement
|
| Price talk: | 7½%
|
| Marketing: | Roadshow
|
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