New Issue: GFL Environmental prices $400 million five-year notes to yield at par to yield 5 3/8%

By Paul A. Harris

Portland, Ore., Feb. 21 – GFL Environmental Inc. priced a $400 million issue of five-year senior notes (B3/B-) at par to yield 5 3/8% in a quick-to-market Wednesday trade, according to market sources.

The yield printed in the middle of the 5¼% to 5½% yield talk. Initial guidance had the deal coming with a yield in the 5½% context.

Barclays was the left bookrunner. BMO Securities, Credit Suisse Securities (USA) LLC, Macquarie Capital and RBC Capital Markets LLC were the joint bookrunners.

The Vaughan, Ont.-based diversified environmental services company plans to use the proceeds to repay borrowings under its senior secured revolving credit facility and for general corporate purposes, including financing future acquisitions and organic growth initiatives.

Issuer:	GFL Environmental Inc.
Amount:	$400 million
Maturity:	March 1, 2023
Securities:	Senior notes
Left bookrunner:	Barclays
Joint bookrunners:	BMO Securities, Credit Suisse Securities (USA) LLC, Macquarie Capital, RBC Capital Markets LLC
Co-managers:	National Bank of Canada Financial, Scotia, CIBC, Comerica
Coupon:	5 3/8%
Price:	Par
Yield:	5 3/8%
Spread:	271 bps
First call:	Make-whole call at Treasuries plus 50 bps until March 1, 2020, then callable at 102.688
Equity clawback:	40% at 105.375 until March 1, 2020
Trade date:	Feb. 21
Settlement date:	Feb. 26
Ratings:	Moody's: B3
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5¼% to 5½%
Marketing:	Quick to market

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