By Andrea Heisinger
New York, June 3 - Waste Management, Inc. priced $600 million 4.75% 10-year senior unsecured notes on Thursday at 147 basis points over Treasuries, an informed source said.
The notes were priced at the tight end of talk in the 150 bps area.
The notes (Baa3/BBB/BBB) priced at 99.388 to yield 4.827%.
There is a make-whole call at Treasuries plus 25 bps and a change-of-control put of 101%.
The notes are guaranteed by subsidiary Waste Management Holdings Inc.
Bookrunners were Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc. and Goldman Sachs & Co.
Co-managers were BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc. and RBS Securities Inc.
Proceeds will be used to help repay $600 million in outstanding 7.375% senior notes maturing in August 2010, plus interest.
The waste services company is based in Houston.
| Issuer: | Waste Management, Inc.
|
| Issue: | Senior unsecured notes
|
| Guarantor: | Waste Management Holdings Inc.
|
| Amount: | $600 million
|
| Maturity: | June 30, 2020
|
| Bookrunners: | Bank of America Merrill Lynch, Barclays Capital Inc., Citigroup Global Markets Inc., Goldman Sachs & Co.
|
| Co-managers: | BNP Paribas Securities Corp., Deutsche Bank Securities Inc., J.P. Morgan Securities Inc., Morgan Stanley & Co. Inc., RBS Securities Inc.
|
| Coupon: | 4.75%
|
| Price: | 99.388
|
| Yield: | 4.827%
|
| Spread: | Treasuries plus 147 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | June 3
|
| Settlement date: | June 8
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 150 bps area
|
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