Waste Connections amends $3.2 billion facility to release guarantees

By Sarah Lizee

Olympia, Wash., March 27 – Waste Connections, Inc. amended its credit agreement on March 21 to facilitate the release of each of the company’s subsidiaries guaranteeing the obligations under the existing credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

As a result of the amendment, there are no subsidiary guarantors under the amended and restated credit agreement, which has a scheduled maturity date of March 21, 2023.

Borrowings bear interest at Libor plus a margin that ranges from 100 basis points to 150 bps, depending on the leverage ratio. The commitment fee ranges from 9 bps to 20 bps.

The lenders remain committed to providing a $3.2 billion credit facility to the company, consisting of revolving advances up to a total principal amount of $1,562,500,000 at any one time outstanding and a term loan in a total principal amount of $1,637,500,000 that was fully drawn at closing of the amendment.

As part of the total commitments under the revolving advances, the agreement provides for letters of credit to be issued at the request of the company in a total amount not to exceed $320 million and for swingline loans to be issued at the request of the company in a total amount not to exceed the lesser of $75 million and the total commitments under the revolving advances.

The company has the option to request increases in total commitments for revolving advances and one or more additional term loans, provided that the total principal amount of the requests does not exceed $500 million and the total principal amount of commitments and term loans under the credit facility does not exceed $3.7 billion.

At close, $1,637,500,000 under the term loan and $179.7 million under the revolving credit facility were outstanding, exclusive of outstanding letters of credit of $216.3 million.

Proceeds may be used to finance acquisitions permitted under the agreement and for capital expenditures, working capital, payment of some transaction fees and expenses, letters of credit and general corporate purposes.

Bank of America, NA, acting through its Canada Branch, is the global agent, swingline lender and a letter of credit issuer. Bank of America, NA is the U.S. agent and a letter of credit issuer.

Merrill Lynch, Pierce, Fenner & Smith Inc., JPMorgan Chase Bank, NA, Wells Fargo Securities, LLC and MUFG are the joint lead arrangers and joint bookrunners. JPMorgan, Wells Fargo Bank, NA and MUFG are co-syndication agents. Canadian Imperial Bank of Commerce, New York Branch, PNC Bank Canada Branch, BBVA Compass and U.S. Bank NA are co-documentation agents.

Waste Connections is a Woodlands, Texas-based solid waste services company.

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