New Issue: Waste Management prices $750 million 3.15% 10-year senior notes at 78 bps spread

By Cristal Cody

Tupelo, Miss., Oct. 30 – Waste Management, Inc. sold $750 million of 3.15% 10-year senior guaranteed notes (Baa2/A-/BBB+) on Monday at 99.982 to yield 3.152%, according to a market source and an FWP filing with the Securities and Exchange Commission.

The notes priced at a spread of Treasuries plus 78 basis points, on the tight side of guidance in the Treasuries plus 80 bps area.

Barclays, J.P. Morgan Securities LLC and BofA Merrill Lynch were the bookrunners.

The notes are guaranteed by Waste Management Holdings, Inc.

Proceeds will be used to redeem the company’s $590 million of 6.1% senior notes due 2018.

Waste Management is a waste management environmental services company based in Houston.

Issuer:	Waste Management, Inc.
Guarantor:	Waste Management Holdings, Inc.
Amount:	$750 million
Description:	Senior notes
Maturity:	Nov. 15, 2027
Bookrunners:	Barclays, J.P. Morgan Securities LLC and BofA Merrill Lynch
Co-managers:	MUFG, Scotia Capital (USA) Inc., SMBC Nikko Securities America, Inc., Academy Securities, Inc., MFR Securities, Inc. and Siebert Cisneros Shank & Co., LLC
Coupon:	3.15%
Price:	99.982
Yield:	3.152%
Spread:	Treasuries plus 78 bps
Call features:	Make-whole call at Treasuries plus 15 bps before Aug. 15, 2027; thereafter at par
Change-of-control put:	101%
Trade date:	Oct. 30
Settlement date:	Nov. 8
Ratings:	Moody’s: Baa2
	S&P: A-
	Fitch: BBB+
Distribution:	SEC registered
Price talk:	Treasuries plus 80 bps area

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