Published on 2/8/2023 in the Prospect News Investment Grade Daily.
New Issue: Waste Management sells $1.25 billion of notes due 2030, 2033
By Wendy Van Sickle
Columbus, Ohio, Feb. 8 – Waste Management, Inc. sold $1.25 billion of senior notes in a two-part offering with maturities in 2030 and 2033 (Baa1/A-/BBB+) on Wednesday, according to an FWP filing with the Securities and Exchange Commission.
The company priced $750 million of 4.625% seven-year senior notes at 99.858 to yield 4.649% and a spread of 90 basis points over Treasuries.
The issuer also priced $500 million of 4.625% 10-year senior notes at 99.826 to yield 4.647%, or 100 bps over Treasuries.
The notes feature a make-whole call and then a par call.
Waste Management Holdings, Inc. is the guarantor.
J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc. are the bookrunners.
Proceeds will be used to repay borrowings under the company’s commercial paper program used for working capital, which is fully supported by the company’s $3.5 billion revolving credit facility, to repay $500 million aggregate principal amount of outstanding 2.4% senior notes at maturity in May and for general corporate purposes.
Waste Management is a Houston-based provider of waste management environmental services.
| Issuer: | Waste Management, Inc.
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| Guarantor: | Waste Management Holdings, Inc.
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| Amount: | $1.25 billion
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| Issue: | Senior notes
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| Bookrunners: | J.P. Morgan Securities LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., Wells Fargo Securities, LLC, Barclays, BofA Securities, Inc., Deutsche Bank Securities Inc., RBC Capital Markets, LLC and Scotia Capital (USA) Inc.
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| Co-managers: | BNP Paribas Securities Corp., MUFG Securities Americas Inc., Truist Securities, Inc., U.S. Bancorp Investments, Inc., Loop Capital Markets LLC, Academy Securities, Inc., MFR Securities, Inc., Mischler Financial Group, Inc. and Siebert Williams Shank & Co., LLC
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| Trustee: | Bank of New York Mellon Trust Co., NA
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| Counsel to issuer: | Baker Botts LLP
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| Counsel to underwriters: | Gibson, Dunn & Crutcher LLP
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| Trade date: | Feb. 8
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| Settlement date: | Feb. 15
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| Ratings: | Moody’s: Baa1
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| S&P: A-
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| Fitch: BBB+
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| Distribution: | SEC registered
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| 2030 notes
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| Amount: | $750 million
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| Maturity: | Feb. 15, 2030
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| Coupon: | 4.625%
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| Price: | 99.858
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| Yield: | 4.649%
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| Spread: | Treasuries plus 90 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Dec. 15, 2029, then a par call
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| Cusip: | 94106LBT5
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| 2033 notes
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| Amount: | $500 million
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| Maturity: | Feb. 15, 2033
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| Coupon: | 4.625%
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| Price: | 99.826
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| Yield: | 4.647%
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| Spread: | Treasuries plus 100 bps
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| Call: | Make-whole call at Treasuries plus 15 bps until Nov. 15, 2032, then a par call
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| Cusip: | 94106LBU2
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