Republic Services gives early tender results, ups cap to $600 million

New York, June 20 – Republic Services, Inc. announced that it received tenders for $575 million of four series of notes by the early tender deadline and also said that it has raised the tender cap to $600 million from the original $500 million.

The offer to purchase notes from four series issued by Republic and by subsidiary Browning-Ferris Industries, LLC began on June 6.

As of the early tender deadline of 5 p.m. ET on June 17, holders had tendered notes as follows, according to a news release:

• $249,468,000 of Republic’s $650 million of 6.2% notes due March 1, 2040 with priority level one. Pricing will be set using a spread of 150 basis points for a total hypothetical purchase price of $1,329.97;

• $214.33 million of Republic’s $600 million of 5.7% notes due May 15, 2041 with priority level two. Pricing will be set using a spread of 145 bps for a total hypothetical purchase price of $1,267.74;

• $17,215,000 of Browning-Ferris’ $165.2 million of 7.4% debentures due Sept. 15, 2035 with priority level three. Pricing will be set using a spread of 170 bps for a total hypothetical purchase price of $1,414.74;

• $93,782,000 of Republic’s $275,674,000 of 6.086% notes due March 15, 2035 with priority level four. Pricing will be set using a spread of 150 bps for a total hypothetical purchase price of $1,269.04.

When it announced the offer, Republic Services said it would set pricing for each $1,000 principal amount at 2 p.m. ET on June 20 using the bid-side price of the 2.5% Treasury due Feb. 15, 2046 plus the fixed spread indicated above.

The total purchase price will include an early tender premium of $50.00 for each $1,000 principal amount of notes tendered by the early tender date.

The total hypothetical purchase price was set at 2 p.m. ET on June 3, assuming a settlement date of July 5, according to a company announcement.

The tender offers will end at 11:59 p.m. ET on July 1.

Holders will also receive accrued interest to but excluding the settlement date of July 5.

If the offer is oversubscribed, tenders will be accept in order of priority and subject to pro ration.

Barclays (800 438-3242 or 212 528-7581), BofA Merrill Lynch (888 292-0070 or 980 387-3907) and JPMorgan (866 834-4666 or 212 834-3424) are the lead dealer managers. Global Bondholder Services Co. is the tender agent and information agent.

Republic Services is a waste collection company based in Phoenix.

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