Published on 7/27/2023 in the Prospect News Investment Grade Daily.
New Issue: Waste Management sells $2 billion of notes due 2029, 2034
By Wendy Van Sickle
Columbus, Ohio, July 27 – Waste Management, Inc. sold $2 billion of senior notes in a two-part offering with maturities in 2029 and 2034 (Baa1/A-/BBB+) on Thursday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $750 million of 4.875% senior notes due Feb. 15, 2029 at 99.314 to yield 5.018% and a spread of 75 basis points over Treasuries.
The issuer also priced $1.25 billion of 4.875% senior notes Feb. 15, 2034 at 98.502 to yield 5.06%, or 105 bps over Treasuries.
The notes feature a make-whole call and then a par call.
Waste Management Holdings, Inc. is the guarantor.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to repay borrowings under the company’s commercial paper program used for working capital, which is fully supported by the company’s $3.5 billion revolving credit facility, to repay borrowings under its $1 billion two-year term credit agreement maturing in May 2024 and for general corporate purposes.
Waste Management is a Houston-based provider of waste management environmental services.
| Issuer: | Waste Management, Inc.
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| Guarantor: | Waste Management Holdings, Inc.
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| Amount: | $2 billion
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| Issue: | Senior notes
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| Bookrunners: | Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Scotia Capital (USA) Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., RBC Capital Markets, LLC and Truist Securities, Inc.
|
| Co-managers: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC, PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., CastleOak Securities, LP, CAVU Securities, LLC, Loop Capital Markets LLC and Stern Brothers & Co.
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Baker Botts LLP
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| Counsel to underwriters: | Gibson, Dunn & Crutcher LLP
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| Trade date: | July 27
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| Settlement date: | Aug. 3
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: BBB+
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| Distribution: | SEC registered
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|
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| 2029 notes
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| Amount: | $750 million
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| Maturity: | Feb. 15, 2029
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| Coupon: | 4.875%
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| Price: | 99.314
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| Yield: | 5.018%
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| Spread: | Treasuries plus 75 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Jan. 15, 2029, then a par call
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| Cusip: | 94106LBV0
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|
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| 2034 notes
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| Amount: | $1.25 billion
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| Maturity: | Feb. 15, 2034
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| Coupon: | 4.875%
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| Price: | 98.502
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| Yield: | 5.06%
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| Spread: | Treasuries plus 105 bps
|
| Call: | Make-whole call at Treasuries plus 20 bps until Nov. 15, 2033, then a par call
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| Cusip: | 94106LBW8
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