By Andrea Heisinger
New York, Aug. 24 - Waste Management, Inc. sold $500 million of 2.6% five-year senior notes on Wednesday at a spread of Treasuries plus 160 basis points, according to an informed source.
The notes were sold at the tight end of guidance in the 165 bps area, plus or minus 5 bps.
The notes (Baa3/BBB/BBB) were priced at 99.991 to yield 2.602%.
There is a make-whole call at Treasuries plus 25 bps and a change-of-control put at 101%.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Co-managers were Banco Bilbao Vizcaya Argentaria, SA, BNY Mellon Capital Markets, LLC, Comercia Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc. and SMBC Nikko Capital Markets Ltd.
The notes are guaranteed by Waste Management Holdings, Inc.
Proceeds will be used to repay outstanding borrowings in full under a $2 billion revolving credit facility with any remainder used for general corporate purposes.
Waste Management last sold debt in a $400 million sale of 4.6% 10-year notes priced at 118 bps over Treasuries.
The company handles the collection, transfer, recycling and disposal of waste and is based in Houston.
| Issuer: | Waste Management, Inc.
|
| Guarantor: | Waste Management Holdings, Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Maturity: | Sept. 1, 2016
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Banco Bilbao Vizcaya Argentaria, SA, BNY Mellon Capital Markets, LLC, Comercia Securities, Inc., Mitsubishi UFJ Securities (USA), Inc., Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd.
|
| Coupon: | 2.6%
|
| Price: | 99.991
|
| Yield: | 2.602%
|
| Spread: | Treasuries plus 160 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 24
|
| Settlement date: | Aug. 29
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 165 bps area, plus or minus 5 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
