By Andrea Heisinger
New York, Feb. 23 - Waste Management, Inc. priced $400 million of 4.6% 10-year notes on Wednesday to yield Treasuries plus 118 basis points, said a source away from the sale.
The notes were sold at the tight end of guidance in the 120 bps area, the source said.
The notes (Baa3/BBB/BBB) priced at 99.762 to yield 4.63%.
There is a make-whole call at Treasuries plus 20 bps and a change-of-control put at 101%.
Deutsche Bank Securities Inc. and RBS Securities Inc. were the bookrunners.
Co-managers were Credit Agricole Securities USA Inc., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., PNC Capital Markets LLC and U.S. Bancorp Investments Inc.
Proceeds are being used to repay $147 million of outstanding 7.65% senior notes maturing in March, plus interest of about $5.6 million. The remainder will be used for general corporate purposes, including working capital, capital expenditures and funding of potential acquisitions and business investments.
The notes are guaranteed by subsidiary Waste Management Holdings, Inc.
The company handles the collection, transfer, recycling and disposal of waste and is based in Houston.
| Issuer: | Waste Management, Inc.
|
| Guarantor: | Waste Management Holdings, Inc.
|
| Issue: | Notes
|
| Amount: | $400 million
|
| Maturity: | March 1, 2021
|
| Bookrunners: | Deutsche Bank Securities Inc., RBS Securities Inc.
|
| Co-managers: | Credit Agricole Securities USA Inc., Credit Suisse Securities (USA) LLC, Lloyds Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc.
|
| Coupon: | 4.6%
|
| Price: | 99.762
|
| Yield: | 4.63%
|
| Spread: | Treasuries plus 118 bps
|
| Call: | Make-whole at Treasuries plus 20 bps before Dec. 1, 2020, then at par
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 23
|
| Settlement date: | Feb. 28
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 120 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.
