Waste Management sets tender offer pricing for five series of notes

By Angela McDaniels

Tacoma, Wash., Feb. 24 – Waste Management, Inc. announced the prices it will pay in the tender offer for five series of notes with a total of $2.35 billion outstanding.

Pricing for the notes was set at 2 p.m. ET on Feb. 24 using a fixed spread over a reference Treasury security.

According to a company news release, the notes covered by the tender are

• $448,975,000 of 7.1% notes due 2026 issued by subsidiary Waste Management Holdings, Inc. Pricing was set at $1,366.18 per $1,000 principal amount of notes using a spread of 125 basis points over the 2% Treasury due Feb. 15, 2025;

• $577,205,000 of 7% notes due 2028. Pricing was set at $1,366.24 per $1,000 principal amount of notes using a spread of 155 bps over the 2% Treasury due Feb. 15, 2025;

• $222.93 million of 7.375% notes due 2029. Pricing was set at $1,418.49 per $1,000 principal amount of notes using a spread of 160 bps over the 2% Treasury due Feb. 15, 2025;

• $496 million of 7.75% notes due 2032. Pricing was set at $1,529.86 per $1,000 principal amount of notes using a spread of 100 bps over the 3% Treasury due Nov. 15, 2044; and

• $600 million of 6.125% notes due 2039. Pricing was set at $1,381.83 per $1,000 principal amount of notes using a spread of 115 bps over the 3% Treasury due Nov. 15, 2044.

Waste Management will also pay accrued interest up to but excluding the settlement date.

The tender offer began Feb. 18 and was scheduled to end at 5 p.m. ET on Feb. 24. Settlement is expected on Feb. 27.

Completion of the tender is subject to conditions that include the sale of new notes by Waste Management.

Deutsche Bank Securities Inc. (866 627-0391 or 212 250-2955), Goldman Sachs & Co. (800 828-3182 or 212 902-6941), J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and Credit Suisse Securities (USA) LLC are the dealer managers.

Global Bondholder Services Corp. (866 470-3700, banks and brokers 212 430-3774) is the information agent and depositary.

Waste Management is a Houston-based provider of waste collection, transfer, recycling and resource recovery and disposal services.

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