Published on 3/4/2020 in the Prospect News Investment Grade Daily.
New Issue: Waste Connections sells $500 million 3.05% 30-year notes at 150 bps over Treasuries
By Cristal Cody
Tupelo, Miss., March 4 – Waste Connections, Inc. priced an upsized $500 million 3.05% 30-year senior notes (Baa2/BBB+/BBB+) on Wednesday at a spread of 150 basis points over Treasuries, according to a market source and an FWP filing with the Securities and Exchange Commission.
Initial price talk was at the Treasuries plus 180 bps area.
The deal was upsized from $400 million.
The notes priced at 98.525 to yield 3.126%.
BofA Securities, Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, CIBC World Markets Corp., Fifth Third Securities, Inc., PNC Capital Markets LLC and BBVA Securities Inc. were the bookrunners.
Proceeds will be used to pay down the company’s revolving credit facility and term loan and for general corporate purposes.
The natural gas transmission and production company is based in Houston.
| Issuer: | Waste Connections, Inc.
|
| Amount: | $500 million
|
| Description: | Senior notes
|
| Maturity: | April 1, 2050
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities LLC, CIBC World Markets Corp., Fifth Third Securities, Inc., PNC Capital Markets LLC and BBVA Securities Inc.
|
| Co-managers: | U.S. Bancorp Investments, Inc., TD Securities (USA) LLC, SunTrust Robinson Humphrey, Inc., Scotia Capital (USA) Inc. and Citizens Capital Markets, Inc.
|
| Coupon: | 3.05%
|
| Price: | 98.525
|
| Yield: | 3.126%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before Oct. 1, 2049 at greater of par or Treasuries plus 25 bps; thereafter at par
|
| Trade date: | March 4
|
| Settlement date: | March 13
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 180 bps area
|
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