Published on 4/9/2019 in the Prospect News Canadian Bonds Daily and Prospect News Investment Grade Daily.
New Issue: Waste Connections prices $500 million of 3.5% notes due 2029 at 103 bps spread
By Cristal Cody
Tupelo, Miss., April 9 – Waste Connections, Inc. priced $500 million of 3.5% 10-year senior notes (Baa2/BBB+/BBB+) on Tuesday at 99.738 to yield 3.531%, or a spread of Treasuries plus 103 basis points, according to a market source and an FWP filing with the Securities and Exchange Commission.
The notes priced on the tight side of guidance in the Treasuries plus 105 bps area and better than initial talk in the 125 bps spread area.
BofA Merrill Lynch, J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, CIBC World Markets Corp. and PNC Capital Markets LLC were the bookrunners.
Proceeds will be used to repay debt outstanding under the company’s credit agreement and for general corporate purposes.
Waste Connections is a solid waste services company with headquarters in The Woodlands, Tex., and Vaughan, Ont., that services markets in the United States and Canada.
| Issuer: | Waste Connections, Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | May 1, 2029
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, CIBC World Markets Corp. and PNC Capital Markets LLC
|
| Co-managers: | U.S. Bancorp Investments, Inc., BBVA Securities Inc., TD Securities (USA) LLC, Fifth Third Securities, Inc., BB&T Capital Markets, Scotia Capital (USA) Inc. and Citizens Capital Markets, Inc.
|
| Coupon: | 3.5%
|
| Price: | 99.738
|
| Yield: | 3.531%
|
| Spread: | Treasuries plus 103 bps
|
| Call features: | Make-whole call before Feb. 1, 2029 at price equal to greater of par or Treasuries plus 20 bps; thereafter at par
|
| Change-of-control put: | 101%
|
| Trade date: | April 9
|
| Settlement date: | April 16
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Marketing: | Fixed income investor calls
|
| Price guidance: | Treasuries plus 105 bps area; initial talk at Treasuries plus 125 bps area
|
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