By Paul A. Harris
Portland, Ore., April 17 – GFL Environmental Inc. priced an upsized $600 million issue of 8½% eight-year senior notes (Caa2/CCC+) at par to yield 8.499% in a quick-to-market Wednesday transaction, according to a market source.
The issue size was increased from $500 million.
The yield printed at the tight end of the 8½% to 8¾% yield talk.
Barclays was the left lead bookrunner.
BMO Capital Markets Corp., MQB, RBC Capital Markets LLC, Scotia Capital, Goldman Sachs and TD Securities were also bookrunners.
The Toronto-based diversified environmental services provider plans to use the proceeds to repay amounts drawn under its revolving credit facility, including amounts drawn to fund its interim 2019 acquisitions, and for general corporate purposes, which may include the repayment of certain debt and funding future acquisitions.
The additional proceeds resulting from the $100 million upsizing of the deal will be used for general corporate purposes.
| Issuer: | GFL Environmental Inc.
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | May 1, 2027
|
| Securities: | Senior notes
|
| Lead left bookrunner: | Barclays
|
| Bookrunners: | BMO Capital Markets Corp., MQB, RBC Capital Markets LLC, Scotia Capital, Goldman Sachs and TD Securities
|
| Co-managers: | NBC, CIBC World Markets and HSBC Securities
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8.499%
|
| Spread: | 597 bps
|
| First call: | May 1, 2022 at 104.25
|
| Equity clawback: | 40% at 108.5 until May 1, 2022
|
| Trade date: | April 17
|
| Settlement date: | April 23
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8½% to 8¾%
|
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