Published on 2/18/2015 in the Prospect News Investment Grade Daily.
New Issue: Waste Management prices $1.8 billion of notes due 2025, 2035, 2045
By Aleesia Forni
Virginia Beach, Feb. 18 – Waste Management, Inc. sold $1.8 billion of senior notes (Baa2/A-/BBB) in tranches due 2025, 2035 and 2045 on Wednesday, according to a market source and an FWP filed with the Securities and Exchange Commission.
The sale included $600 million of 3.125% notes due 2025 priced at 99.574 to yield 3.175%, or 110 basis points over Treasuries.
A second tranche was $450 million of 3.9% 20-year bonds priced at 99.834 to yield 3.912%, or 120 bps over Treasuries.
Finally, $750 million of 4.1% bonds due 2045 priced at 99.794 to yield 4.112%, or Treasuries plus 140 bps.
The bookrunners were Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, RBS Securities Inc. and Wells Fargo Securities LLC.
Proceeds will be used for general corporate purposes.
The notes are guaranteed by Waste Management Holdings Inc.
The waste collection, recycling and disposal company is based in Houston.
| Issuer: | Waste Management Inc.
|
| Guarantor: | Waste Management Holdings Inc.
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| Issue: | Senior notes
|
| Amount: | $1.8 billion
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co., J.P. Morgan Securities LLC, Barclays, BofA Merrill Lynch, RBS Securities Inc., Wells Fargo Securities LLC
|
| Co-managers: | MUFG, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., BBVA Securities Inc., BNP Paribas Securities Corp., Citigroup Global Markets Inc., PNC Capital Markets LLC, SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc., Blaylock Beal Van, LLC, BNY Mellon Capital Markets, LLC, Comerica Securities, Inc., Drexel Hamilton, LLC, Lloyds Securities Inc.
|
| Trade date: | Feb. 18
|
| Settlement date: | Feb. 26
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| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: A-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 3.125%
|
| Price: | 99.574
|
| Yield: | 3.175%
|
| Spread: | 110 bps
|
| Price talk: | 130 bps area
|
| Make-whole call: | 20 bps prior to Dec. 1, 2024, then callable at par
|
|
|
| 20-year bonds
|
| Amount: | $450 million
|
| Maturity: | March 1, 2035
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| Coupon: | 3.9%
|
| Price: | 99.834
|
| Yield: | 3.912%
|
| Spread: | 120 bps
|
| Price talk: | 140 bps to 145 bps
|
| Make-whole call: | 20 bps prior to Sept. 1, 2034, then callable at par
|
|
|
| 30-year bonds
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| Amount: | $750 million
|
| Maturity: | March 1, 2045
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| Coupon: | 4.1%
|
| Price: | 99.794
|
| Yield: | 4.112%
|
| Spread: | 140 bps
|
| Price talk: | 160 bps to 165 bps
|
| Make-whole call: | 25 bps prior to Sept. 1, 2044, then callable at par
|
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