GFL Environmental to price $775 million senior notes in two parts

By Abigail W. Adams

Portland, Me., Dec. 9 – GFL Environmental Inc. plans to price $775 million in two-tranches, including $500 million of seven-year senior secured notes (B1/B+) and a $275 million add-on to the 7% senior notes due 2026 (Caa2/CCC+).

Early talk has the senior secured notes coming in the mid-5% area and the add-on coming around par, according to a market source.

Barclays is lead left bookrunner for the Rule 144A and Regulation S offering. BMO Capital Markets, Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., and TD Securities (USA) LLC are joint bookrunners.

The new senior secured notes are non-callable for three years with first call at par plus 50% of the coupon.

There is a poison put of 101%.

There is an equity clawback of up to 40% of the principal within the first three years.

GFL Environmental is a Vaughan, Ont.-based waste management company.

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