By Abigail W. Adams
Portland, Me., Dec. 9 – GFL Environmental Inc. priced $775 million in two tranches in a quick-to-market Monday trade, according to a market source.
The deal included a $500 million tranche of senior secured notes due Dec. 15, 2026 (B1/B+), which priced at par to yield 5 1/8%.
The tranche priced on the tight side of official talk in the 5¼% area. Early guidance was in the mid-5% area.
The deal also included a $275 million add-on to the 7% senior notes due June 1, 2026 (Caa2/CCC+), which priced at 101.143 to yield 6 5/8%.
Official talk was for a yield in the 6¾% area.
Barclays will bill and deliver for the Rule 144A and Regulation S offering. BMO Capital Markets, Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc., and TD Securities (USA) LLC are joint bookrunners.
The new senior secured notes are non-callable until Dec. 15, 2022 with first call at 102.563. There is a poison put of 101%.
There is an equity clawback of up to 40% of the principal within the first three years.
The 7% senior notes are callable on or after June 1, 2021 at 103.5.
GFL Environmental is a Vaughan, Ont.-based waste management company.
| Issuer: | GFL Environmental Inc.
|
| Amount: | $775 million
|
| Bookrunners: | Barclays (bill & deliver), BMO Capital Markets, Goldman Sachs & Co. LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc. and TD Securities (USA) LLC
|
| Trade date: | Dec. 9
|
| Settlement date: | Dec. 16
|
| Marketing: | Quick to market
|
|
|
| 2026 notes
|
| Amount: | $500 million
|
| Maturity: | Dec. 15, 2026
|
| Securities: | Senior secured notes
|
| Coupon: | 5 1/8%
|
| Price: | Par
|
| Yield: | 5 1/8%
|
| Spread: | 337 bps
|
| Call protection: | Non-callable until Dec. 15, 2022
|
| Ratings: | Moody's: B1
|
| S&P: B+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5¼% area; initial talk mid-5% area
|
|
|
| Add-on to 7% notes
|
| Amount: | $275 million
|
| Maturity: | June 1, 2026
|
| Securities: | Senior notes
|
| Coupon: | 7%
|
| Price: | 101.143
|
| Yield: | 6 5/8%
|
| Spread: | 488 bps
|
| Call protection: | Non-callable until June 1, 2021
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 6¾% area
|
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