Waste Connections enters new revolver to repay 2021, 2022 term loans

By Marisa Wong

Los Angeles, Feb. 29 – Waste Connections, Inc. entered into a revolving credit agreement on Feb. 27 for aggregate commitments of up to $3 billion, according to an 8-K filing with the Securities and Exchange Commission.

The agreement provides for, at the company’s discretion, flexibility for an uncommitted upsize of the aggregate principal amount by up to $1 billion, to an aggregate principal amount of up to $4 billion.

The revolver includes a $320 million sublimit for letters of credit and a $100 million sublimit for swingline loans.

Advances are available in U.S. dollars and Canadian dollars.

The revolver has a five-year term but includes two additional one-year maturity date extensions.

Interest accrues at term SOFR or term Corra plus a credit spread adjustment and an applicable margin. The credit spread adjustment for term SOFR loans is 10 basis points, and the credit spread adjustment for term Corra loans is 29.547 bps for an interest period of one month and 32.138 bps for an interest period of three months. The applicable margin is based on the company’s debt rating and ranges from 75 bps to 125 bps.

The company will also pay a commitment fee based on the debt rating ranging from 6.5 bps to 15 bps.

The revolver includes a financial covenant limiting, as of the last day of each fiscal quarter, the ratio of consolidated total funded debt to consolidated EBITDA, measured for the preceding 12 months, to not more than 3.75 to 1.00, or 4.25 to 1.00 during material acquisition periods.

Bank of America, NA, Canada Branch is the global agent, swingline lender and a letter-of-credit issuer, and Bank of America, NA is U.S. agent and a letter-of-credit issuer.

BofA Securities, Inc., JPMorgan Chase Bank, NA, PNC Capital Markets LLC and Truist Securities, Inc. are the joint lead arrangers and joint bookrunners.

JPMorgan, PNC Bank Canada Branch and Truist Bank are the co-syndication agents.

Waste Connections used a portion of the proceeds from borrowings under the revolving credit agreement to prepay the amounts outstanding under its second amended and restated revolving credit and term loan agreement dated July 30, 2021 with Bank of America, Canada Branch as the global agent, the swingline lender and a letter-of-credit issuer and Bank of America, NA as the U.S. agent and a letter-of-credit issuer.

The company also used a portion of the proceeds from the new revolver to prepay the amounts outstanding under its term loan agreement dated Oct. 31, 2022 with Bank of America as administrative agent.

The company terminated the 2021 and 2022 credit agreements on the effective date of the new revolving credit agreement.

The waste services company has headquarters in the Woodlands, Tex., and Woodbridge, Ont.

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