New Issue: GFL Environmental prices upsized $500 million 4¼% five-year secured notes at par

By Paul A. Harris

Portland, Ore., April 22 – GFL Environmental Inc. priced an upsized $500 million issue of five-year senior secured notes (Ba3/BB-) at par to yield 4¼% in a Wednesday drive-by, according to market sources.

Bookrunners were Barclays, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC.

The issue size increased from $400 million.

The yield printed at the tight end of the 4¼% to 4½% yield talk. Initial talk was in the 4½% area.

The Vaughan, Ont.-based waste management company plans to use the proceeds, including the additional proceeds generated by the $100 million upsizing of the deal, for general corporate purposes, including acquisitions.

Issuer:	GFL Environmental Inc.
Amount:	$500 million, increased from $400 million
Maturity:	June 1, 2025
Securities:	Senior secured notes
Bookrunners:	Barclays, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, RBC Capital Markets LLC, Scotia Capital (USA) Inc. and TD Securities (USA) LLC
Co-managers:	CIBC World Markets Corp., National Bank of Canada Financial Inc., HSBC Securities (Canada) Inc. and Macquarie Capital (USA) Inc.
Coupon:	4¼%
Price:	Par
Yield:	4¼%
Spread:	385 bps
First call:	Make-whole call at Treasuries plus 50 bps until June 1, 2022, then callable at 102.125
Equity clawback:	40% at 104.25 until June 1, 2022
Trade date:	April 22
Settlement date:	April 29
Ratings:	Moody's: Ba3
	S&P: BB-
Distribution:	Rule 144A and Regulation S for life
Price talk:	4¼% to 4½%
Marketing:	Drive-by

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