Waste Management markets five tranches of fixed-rate senior notes

By Cristal Cody

Tupelo, Miss., May 14 – Waste Management, Inc. (Baa1/A-/BBB+) is marketing a five-tranche offering of fixed-rate senior notes (Baa2/BBB+/BBB+) on Tuesday, according to a 424B3 filing with the Securities and Exchange Commission.

The deal includes 2024, 2026, 2029, 2039 and 2049 maturities.

Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC are the lead bookrunners. The syndicate also includes Barclays, BNP Paribas Securities Corp., BofA Merrill Lynch, Citigroup Global Markets Inc., SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Wells Fargo Securities LLC.

The notes will be fully guaranteed by subsidiary Waste Management Holdings, Inc.

On April 14, Waste Management said it entered into a plan of merger with Advanced Disposal Services, Inc. and its indirect subsidiaries Everglades Merger Sub Inc. Everglades Merger Sub will merge into Advanced Disposal Services and continue as the surviving company and Waste Management’s indirectly wholly owned subsidiary.

Proceeds from the offering will be used for merger costs and fees and to fund a concurrent tender offer for certain outstanding senior notes.

If the merger is not completed on or before July 14, 2020, the 2024, 2026, 2029 and 2039 notes will have a mandatory redemption at 101.

The deal includes a change-of-control put at 101%.

Waste Management is a Houston-based provider of water management environmental services.

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