Waste Management Announces Pricing of $2.5 Billion Senior Notes
Waste Management (NYSE: WM) today announced today that it has priced a $2.5 billion aggregate public offering of senior notes under an effective shelf registration statement previously filed with the Securities and Exchange Commission (the “SEC”), as follows:
- $500,000,000 aggregate principal amount of 0.750% senior notes due November 15, 2025;
- $500,000,000 aggregate principal amount of 1.150% senior notes due March 15, 2028;
- $1,000,000,000 aggregate principal amount of 1.500% senior notes due March 15, 2031; and
- $500,000,000 aggregate principal amount of 2.500% senior notes due November 15, 2050.
The notes will be fully and unconditionally guaranteed by the company’s wholly-owned subsidiary, Waste Management Holdings, Inc. The notes have been assigned ratings of A- by Standard & Poor’s, BBB+ by Fitch and Baa1 by Moody’s.
The offering is expected to close on November 17, 2020, subject to the satisfaction of closing conditions. The company intends to use the net proceeds from the offering to repay all of the outstanding borrowings under the company’s $3.0 billion, 364-day, U.S. revolving credit facility (“$3.0 billion revolving credit facility”), to redeem its $400 million aggregate principal amount of 4.60% Senior Notes due March 2021 (the “2021 Notes”), including the payment of accrued and unpaid interest, and for general corporate purposes. Pending such application of the net proceeds, the company may temporarily invest in short-term investments.
All of the outstanding borrowings under the company’s $3.0 billion revolving credit facility were used to pay a portion of the consideration for the previously announced acquisition of Advanced Disposal Services, Inc. (“Advanced Disposal”), and related fees and expenses, including the repayment of certain Advanced Disposal debt in connection with the closing of the acquisition. Also as previously announced, the company issued a notice of redemption under the indenture governing the 2021 Notes on November 3, 2020, and the redemption date will be December 3, 2020. This press release does not constitute a notice of redemption under the indenture governing the 2021 Notes or under any indenture of Advanced Disposal.