By Andrea Heisinger
New York, Feb. 23 - Waste Management, Inc. priced $800 million of senior notes (Baa3/BBB/BBB) in two tranches Monday, according to market sources and an FWP filing with the Securities and Exchange Commission.
The $350 million of 6.375% six-year notes priced at 99.65 to yield 6.445%, or 462.5 basis points over Treasuries.
The $450 million of 7.375% 10-year notes priced at 99.882 to yield 7.391%, also at 462.5 bps over Treasuries.
Both tranches have make-whole calls at Treasuries plus 50 bps.
The price talk for both tranches was in the 462.5 bps area, a source said.
Both tranches feature a change-of-control put of 101%.
Bookrunners were Barclays Capital Inc., Credit Suisse Securities, Deutsche Bank Securities and RBS Greenwich Capital.
Co-managers for the six-year notes were BNP Paribas Securities, Calyon Securities, PNC Capital, Scotia Capital and Wells Fargo Securities.
Co-managers for the 10-year notes were BNP Paribas Securities, Goldman Sachs & Co., Mizuho Securities, Morgan Keegan & Co., Scotia Capital and SunTrust Robinson Humphrey.
Proceeds will be used to repay in full at maturity certain debt securities and for general corporate purposes.
The notes are guaranteed by Waste Management Holdings, Inc.
The waste services company is based in Houston.
| Issuer: | Waste Management, Inc.
|
| Guarantor: | Waste Management Holdings, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $800 million
|
| Bookrunners: | Barclays Capital Inc., Credit Suisse Securities, Deutsche Bank Securities, RBS Greenwich Capital
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 26
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
|
|
| Six-year notes
|
| Amount: | $350 million
|
| Maturity: | March 11, 2015
|
| Co-managers: | BNP Paribas Securities, Calyon Securities, PNC Capital, Scotia Capital, Wells Fargo Securities
|
| Coupon: | 6.375%
|
| Price: | 99.65
|
| Yield: | 6.445%
|
| Spread: | Treasuries plus 462.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 462.5 bps area
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | March 11, 2019
|
| Co-managers: | BNP Paribas Securities, Goldman Sachs & Co., Mizuho Securities, Morgan Keegan & Co., Scotia Capital, SunTrust Robinson Humphrey
|
| Coupon: | 7.375%
|
| Price: | 99.882
|
| Yield: | 7.391%
|
| Spread: | Treasuries plus 462.5 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 462.5 bps area
|
© 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.
