Published on 11/9/2020 in the Prospect News Investment Grade Daily.
New Issue: Republic Services sells $1.1 billion of fixed-rate notes in two parts
By Cristal Cody
Tupelo, Miss., Nov. 9 – Republic Services, Inc. sold $1.1 billion of fixed-rate notes (Baa2/BBB+/BBB) in two tranches on Monday, according to an FWP filed with the Securities and Exchange Commission.
The company priced $350 million of 0.875% five-year notes at 99.898 to yield 0.896%, or a spread of Treasuries plus 45 basis points.
A $750 million offering of 1.75% notes due Feb. 15, 2032 priced at 99.94 to yield 1.756%. The notes priced with an 80 bps over Treasuries spread.
Barclays, J.P. Morgan Securities LLC, MUFG, BNP Paribas Securities Corp., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc. were the bookrunners of the five-year notes.
BofA Securities, Inc., JPMorgan, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BNP Paribas, Mizuho and Scotia were the lead managers of the 2032 notes.
Proceeds will be used to redeem the company’s 2022 notes in full and its 2023 notes in part, as well as for general corporate purposes.
Republic Services is a solid waste collection, disposal and recycling company based in Phoenix.
| Issuer: | Republic Services, Inc.
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| Amount: | $1.1 billion
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| Description: | Notes
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| Trade date: | Nov. 9
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| Settlement date: | Nov. 24
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| Ratings: | Moody’s: Baa2
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| S&P: BBB+
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| Fitch: BBB
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| Distribution: | SEC registered
|
|
|
| Notes due 2025
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| Amount: | $350 million
|
| Maturity: | Nov. 15, 2025
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| Bookrunners: | Barclays, J.P. Morgan Securities LLC, MUFG, BNP Paribas Securities Corp., Mizuho Securities USA LLC, Scotia Capital (USA) Inc., Truist Securities, Inc. and U.S. Bancorp Investments, Inc.
|
| Co-managers: | PNC Capital Markets LLC, RBC Capital Markets, LLC, C. L. King & Associates, Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
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| Coupon: | 0.875%
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| Price: | 99.898
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| Yield: | 0.896%
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| Spread: | Treasuries plus 45 bps
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| Call features: | Make-whole call at Treasuries plus 10 bps before Oct. 15, 2025 thereafter at par
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|
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| Notes due 2032
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| Amount: | $750 million
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| Maturity: | Feb. 15, 2032
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| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, BNP Paribas Securities Corp., Mizuho Securities USA LLC and Scotia Capital (USA) Inc.
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| Co-managers: | Barclays, KeyBanc Capital Markets Inc., MUFG, RBC Capital Markets, LLC, PNC Capital Markets LLC, C. L. King & Associates, Inc., Loop Capital Markets LLC and Siebert Williams Shank & Co., LLC
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| Coupon: | 1.75%
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| Price: | 99.94
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| Yield: | 1.756%
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| Spread: | Treasuries plus 80 bps
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| Call features: | Make-whole call at Treasuries plus 15 bps before Nov. 15, 2031; thereafter at par
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