Published on 5/9/2016 in the Prospect News Investment Grade Daily.
New Issue: Waste Management prices $500 million 2.4% seven-year notes at 90 bps over Treasuries
By Cristal Cody
Eureka Springs, Ark., May 9 – Waste Management, Inc. sold $500 million of 2.4% seven-year senior notes at 99.898 to yield 2.416% on Monday, according to an FWP filing with the Securities and Exchange Commission.
The notes (Baa2/A-/BBB) priced with a spread of 90 basis points over Treasuries.
Citigroup Global Markets, Inc., BofA Merrill Lynch and Mizuho Securities USA Inc. were the bookrunners.
The notes are guaranteed by Waste Management Holdings, Inc.
Proceeds, along with cash on hand, will be used to repay $500 million of the company’s outstanding 2.6% senior notes due in September and may be temporarily used to pay down short-term borrowings under the company’s $2.25 billion revolving credit facility, which was used for working capital and to invest in short-term investments.
Waste Management is a Houston-based provider of waste collection, transfer, recycling and resource recovery and disposal services.
| Issuer: | Waste Management, Inc.
|
| Guarantor: | Waste Management Holdings, Inc.
|
| Amount: | $500 million
|
| Maturity: | May 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Citigroup Global Markets, Inc., BofA Merrill Lynch, Mizuho Securities USA Inc.
|
| Co-managers: | Scotia Capital (USA) Inc., PNC Capital Markets LLC, Comerica Securities, Inc., Drexel Hamilton, LLC, Siebert Brandford Shank & Co., LLC
|
| Coupon: | 2.4%
|
| Price: | 99.898
|
| Yield: | 2.416%
|
| Spread: | Treasuries plus 90 bps
|
| Call feature: | Make-whole call before March 15, 2023 at Treasuries plus 15 bps; on or after March 15, 2023 at par
|
| Pricing date: | May 9
|
| Settlement date: | May 16
|
| Ratings: | Moody’s: Baa2
|
| S&P: A-
|
| Fitch: BBB
|
| Distribution: | SEC registered
|
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