Published on 2/15/2024 in the Prospect News Investment Grade Daily.
New Issue: Waste Connections sells $750 million 5% 10-year notes at 92 bps spread
By Wendy Van Sickle
Columbus, Ohio, Feb. 15 – Waste Connections, Inc. priced $750 million of 5% senior notes due March 1, 2034 (Baa1/BBB+/A-) on Thursday, according to an FWP filed with the Securities and Exchange Commission.
The notes priced at 98.835 to yield 5.15%, or 92 basis points over Treasuries.
BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities, Inc., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and CIBC World Markets Corp. are the joint bookrunning managers for the offering.
Proceeds will be used to pay outstanding borrowings under the company’s revolving credit facility and 2021 term credit facility. As of Dec. 31, the issuer had $453.2 million in borrowings outstanding under the revolver (exclusive of outstanding standby letters of credit of $39.7 million), bearing interest ranging from 6.46% to 8.5%, and had $650 million outstanding on the term loan under the 2021 facility, bearing interest of 6.5%.
The natural gas transmission and production company is based in The Woodlands, Tex.
| Issuer: | Waste Connections, Inc.
|
| Amount: | $750 million
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| Issue: | Senior notes
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| Maturity: | March 1, 2034
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, PNC Capital Markets LLC, Truist Securities Inc. and Mizuho Securities USA LLC, Scotia Capital (USA) Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and CIBC World Markets Corp.
|
| Co-managers: | Huntington Securities, Inc., Fifth Third Securities, 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: | 5%
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| Price: | 98.835
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| Yield: | 5.15%
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| Spread: | Treasuries plus 92 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps before Dec. 1, 2033; thereafter at par
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| Change of control: | At 101 plus interest
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| Trade date: | Feb. 15
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| Settlement date: | Feb. 21
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| Ratings: | Moody’s: Baa1
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| S&P: BBB+
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| Fitch: A-
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| Distribution: | SEC registered
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| Cusip: | 94106BAG6
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