Published on 8/4/2022 in the Prospect News Investment Grade Daily.
New Issue: Waste Connections prices $750 million of 4.2% senior notes due 2033
By William Gullotti
Buffalo, N.Y., Aug. 4 – Waste Connections, Inc. priced $750 million of 4.2% senior notes due Jan. 15, 2033 (Baa2/BBB+/BBB+) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 99.728 to yield 4.233%, or 153 basis points over Treasuries.
The notes may be redeemed early with a Treasuries plus 25 bps make-whole premium before Oct. 15, 2032. After that date, the notes may be redeemed at par. Noteholders will be able to exercise a change of control put at 101 plus interest.
BofA Securities Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, CIBC World Markets Corp., PNC Capital Markets LLC, Fifth Third Securities, Inc. and Truist Securities, Inc. are the joint bookrunning managers for the offering.
Proceeds will be used to pay down borrowings under the company’s revolving credit facility.
The natural gas transmission and production company is based in Houston.
| Issuer: | Waste Connections, Inc.
|
| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | Jan. 15, 2033
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, CIBC World Markets Corp., PNC Capital Markets LLC, Fifth Third Securities, Inc. and Truist Securities, Inc.
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| Co-managers: | U.S. Bancorp Investments, Inc., TD Securities (USA) LLC, Scotia Capital (USA) Inc., Citizens Capital Markets, Inc. and Zions Direct, Inc.
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Latham & Watkins LLP (U.S.), Bennett Jones LLP (Canada)
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| Counsel to underwriters: | Simpson Thacher & Bartlett LLP
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| Coupon: | 4.2%
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| Price: | 99.728
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| Yield: | 4.233%
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| Spread: | Treasuries plus 153 bps
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| Call features: | Make-whole call at 25 bps before Oct. 15, 2032; thereafter at par
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| Change of control: | At 101 plus interest
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| Trade date: | Aug. 4
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| Settlement date: | Aug. 18
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB+
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| Distribution: | SEC registered
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| Cusip: | 94106BAF8
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