GFL Environmental talks C$200 million five-year notes at 7½% area

By Cristal Cody

Tupelo, Miss., June 10 - GFL Environmental Corp. set talk on its C$200 million private placement offering of five-year senior notes in the 7½% yield area, according to a source close to the deal on Monday.

Books are expected to open early Tuesday with pricing to follow for the Rule 144A notes (/B+/DBRS: B) after the company wrapped up a roadshow in New York on Monday.

The roadshow opened on Wednesday in Toronto.

BMO Capital Markets Corp. and Scotia Capital Inc. are the bookrunners. Co-managers are Credit-Suisse Securities (USA) LLC and TD Securities Inc.

The notes are guaranteed by all material subsidiaries of the company.

The offering has an investor put at 101% and a Canada call at the Government of Canada benchmark plus 100 basis points.

The notes are non-callable for two years and are redeemable in 2015 at par plus three-quarters of the coupon, in 2016 at par plus half the coupon and in 2017 and thereafter at par.

The issue has standard high-yield incurrence-based covenants.

The Pickering, Ont.-based environmental services company plans to use the proceeds to repay existing debt, to fund growth initiatives and for general corporate purposes.

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