By Andrea Heisinger
New York, Nov. 12 - Waste Management, Inc. priced $600 million of 6.125% 30-year senior notes on Thursday to yield Treasuries plus 175 basis points, according to an informed source and an FWP filing with the Securities and Exchange Commission.
The notes were talked in the 187.5 bps area, the source said, and priced at the tight end of the margin of plus or minus 12.5 bps.
The notes (Baa3/BBB/BBB) priced at 99.466 to yield 6.164%.
The notes have a make-whole call at Treasuries plus 30 bps and feature a change-of-control put of 101%.
Bookrunners were BNP Paribas Securities Corp., J.P. Morgan Securities Inc., Scotia Capital and Wells Fargo Securities.
Co-managers were Calyon Securities, Citigroup Global Markets Inc., Comerica Securities, Daiwa Securities America Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities, Mizuho Securities, Morgan Keegan & Co., SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments.
Proceeds will be used to fund an equity investment and for other acquisitions and investments.
The deal is guaranteed by the issuer's subsidiary, Waste Management Holdings, Inc.
The waste services company is based in Houston.
| Issuer: | Waste Management, Inc.
|
| Guarantor: | Waste Management Holdings, Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Maturity: | Nov. 30, 2039
|
| Bookrunners: | BNP Paribas Securities Corp., J.P. Morgan Securities Inc., Scotia Capital, Wells Fargo Securities
|
| Co-managers: | Calyon Securities, Citigroup Global Markets Inc., Comerica Securities, Daiwa Securities America Inc., Goldman Sachs & Co., Mitsubishi UFJ Securities, Mizuho Securities, Morgan Keegan & Co., SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments
|
| Coupon: | 6.125%
|
| Price: | 99.466
|
| Yield: | 6.164%
|
| Spread: | 175 bps over Treasuries
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Nov. 12
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 187.5 bps area, plus or minus 12.5 bps
|
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