By Paul A. Harris
Portland, Ore., March 11 – GFL Environmental Inc. priced a $250 million issue of 7 7/8% five-year senior notes (B3/B) at 99.488 to yield 8% on Wednesday, according to a syndicate source.
The yield printed 25 basis points beyond the wide end of the 7½% to 7¾% yield talk.
BMO Capital Markets was the left bookrunner. Credit Suisse Securities (USA) LLC was the joint bookrunner.
The Vaughan, Ont.-based environmental services company plans to use the proceeds to repay revolver and unsecured term loan debt, as well as to fund the tender for up to $50 million of its 7½% Canadian dollar-denominated senior notes, and for general corporate purposes, including potential acquisitions.
GFL Environmental provides solid and liquid waste collection, treatment and disposal solutions as well as soil remediation services to municipal, industrial and commercial sectors.
| Issuer: | GFL Environmental Inc.
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| Amount: | $250 million
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| Maturity: | April 1, 2020
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| Securities: | Senior notes
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| Left bookrunner: | BMO Capital Markets
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| Joint bookrunner: | Credit Suisse Securities (USA) LLC
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| Co-managers: | Scotia Capital, Raymond James, Comerica
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| Coupon: | 7 7/8%
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| Price: | 99.488
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| Yield: | 8%
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| First call: | April 1, 2017 at 103.938
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| Equity clawback: | 35% at 107.975 until April 1, 2017
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| Trade date: | March 11
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| Settlement date: | March 24
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| Ratings: | Moody's: B3
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| Standard & Poor's: B
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| Distribution: | Rule 144A for life and Regulation S, private placement in Canada
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| Price talk: | 7½% to 7¾%
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| Marketing: | Roadshow
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