By Andrea Heisinger
New York, March 1 - Republic Services Inc. sold $1.5 billion of notes (Baa3/BBB/BBB-) in two tranches on Monday, a source away from the deal said.
An $850 million tranche of 5% 10-year notes priced at 99.985 to yield 5.002%, or Treasuries plus 140 basis points. This was at the tight end of price guidance that was in the 145 bps area.
The tranche has a make-whole call at Treasuries plus 25 bps.
A $650 million tranche of 6.2% 30-year bonds sold at 99.92 to yield 6.206%, or Treasuries plus 165 bps. The tranche also priced tight to talk in the 170 bps area.
The 30-year notes have a make-whole call at Treasuries plus 30 bps.
The deal was done under Rule 144A.
Barclays Capital Inc. and J.P. Morgan Securities Inc. ran the books for the 10-year notes, with Scotia Capital and UBS Investment Bank as joint lead managers.
Bank of America Merrill Lynch and JPMorgan were bookrunners on the 30-year tranche. Wells Fargo Securities, SunTrust Robinson Humphrey Inc., Mitsubishi UFJ Securities and Deutsche Bank Securities Inc. were joint leads.
The waste collection company is based in Phoenix.
| Issuer: | Republic Services Inc.
|
| Issue: | Notes
|
| Amount: | $1.5 billion
|
| Distribution: | Rule 144A
|
| Trade date: | March 1
|
| Settlement date: | March 4
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB-
|
|
|
| 10-year notes
|
| Amount: | $850 million
|
| Maturity: | March 1, 2020
|
| Bookrunners: | Barclays Capital Inc., J.P. Morgan Securities Inc.
|
| Joint lead managers: | Scotia Capital, UBS Investment Bank
|
| Coupon: | 5%
|
| Price: | 99.985
|
| Yield: | 5.002%
|
| Spread: | Treasuries plus 140 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 145 bps area
|
|
|
| 30-year bonds
|
| Amount: | $650 million
|
| Maturity: | March 1, 2040
|
| Bookrunners: | Bank of America Merrill Lynch, JPMorgan
|
| Joint lead managers: | Wells Fargo Securities, SunTrust Robinson Humphrey Inc., Mitsubishi UFJ Securities, Deutsche Bank Securities Inc.
|
| Coupon: | 6.2%
|
| Price: | 99.92
|
| Yield: | 6.206%
|
| Spread: | Treasuries plus 165 bps
|
| Call: | Make-whole at Treasuries plus 30 bps
|
| Price talk: | 170 bps area
|
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