By Wendy Van Sickle and Cristal Cody
Columbus, Ohio, Sept. 7 – Waste Connections, Inc. priced $1.5 billion of senior notes due in 2032 and 2052 (Baa2/BBB+/BBB+) on Tuesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $650 million of 2.2% notes due 2032 at 99.836 to yield 2.218%. The notes priced with a spread of 85 basis points over Treasuries versus spread talk in the Treasuries plus 105 bps to 110 bps area, a market source noted.
The company priced $850 million of 2.95% notes due 2052 at 98.501 to yield 3.026%, or 105 bps over Treasuries compared to talk in the Treasuries plus 125 bps to 130 bps area.
Each series will be redeemable with a make-whole premium until the relevant par call date.
Any change-of-control triggering event would mean the company would have to offer to repurchase the notes at 101.
BofA Securities, Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, CIBC World Markets Corp., PNC Capital Markets LLC, Fifth Third Securities, Inc. and Truist Securities, Inc. are bookrunners for the notes.
Proceeds will be used, with borrowings under the company’s credit agreement, to repay the $1.5 billion outstanding of each series of private notes issued pursuant to Waste Connection’s master note purchase agreements.
The solid waste services company is based in The Woodlands, Tex.
| Issuer: | Waste Connections, Inc.
|
| Issue: | Senior notes
|
| Amount: | $1.5 billion
|
| Bookrunners: | BofA Securities, Inc., J.P. Morgan Securities LLC, MUFG, Wells Fargo Securities, LLC, CIBC World Markets Corp., PNC Capital Markets LLC, Fifth Third Securities, Inc. and Truist Securities, Inc.
|
| Co-managers: | Scotia Capital (USA) Inc., TD Securities (USA) LLC, U.S. Bancorp Investments, Inc., Citizens Capital Markets, Inc. and Zions Direct, Inc.
|
| Pricing date: | Sept. 7
|
| Settlement date: | Sept. 20
|
| Ratings: | Moody’s: Baa2
|
| S&P: BBB+
|
| Fitch: BBB+
|
| Distribution: | SEC registered
|
|
|
| Notes due 2032
|
| Amount: | $650 million
|
| Maturity: | Jan. 15, 2032
|
| Coupon: | 2.2%
|
| Price: | 99.836
|
| Yield: | 2.218%
|
| Spread: | 85 bps over Treasuries
|
| Call: | Make-whole call at Treasuries plus 15 bps until Oct. 15, 2031; par call thereafter
|
| Talk: | Treasuries plus 105 bps to 110 bps area
|
| Cusip: | 94106BAC5
|
|
|
| Notes due 2052
|
| Amount: | $850 million
|
| Maturity: | Jan. 15, 2052
|
| Coupon: | 2.95%
|
| Price: | 98.501
|
| Yield: | 3.026%
|
| Spread: | 105 bps over Treasuries
|
| Call: | Make-whole call at 20 bps over Treasuries until July 15, 2051; par call thereafter
|
| Talk: | Treasuries plus 125 bps to 130 bps area
|
| Cusip: | 94106BAD3
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
