GFL Environmental Inc. Announces Proposed Offering of US$210 Million of Tax-Exempt Industrial Revenue Bonds

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has announced plans to participate in a US$210 million tax-exempt industrial revenue bond offering.

Rhea-AI Summary

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has announced plans to participate in a US$210 million tax-exempt industrial revenue bond offering. The Florida Development Finance will issue the bonds, with proceeds loaned to a GFL subsidiary to finance or refinance solid waste disposal facilities in Florida. This unsecured obligation will be guaranteed by GFL and certain subsidiaries.

GFL is pursuing this offering ahead of its 3.750% Senior Secured Notes due 2025, aiming to shift more debt from secured to unsecured, aligning with an investment grade capital structure. The company intends to extend debt maturities and maintain balance sheet flexibility. The bonds will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and have not been registered under the Securities Act.

Positive

• Potential to improve debt structure by moving from secured to unsecured debt
• Alignment with investment grade capital structure
• Opportunity to extend debt maturities
• Preservation of balance sheet flexibility

Negative

• Increase in total debt by US$210 million

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VAUGHAN, ON, Sept. 24, 2024 /PRNewswire/ -- GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL") today announced that it is planning to participate in, subject to market and other conditions, an offering (the "Bond Offering") of US$210 million in aggregate principal amount of Florida Development Finance Corporation (the "Issuer") Solid Waste Disposal Revenue Bonds (the "Bonds"). The Issuer will loan the proceeds of the Bonds to a subsidiary of GFL to finance or refinance certain solid waste disposal facilities located in the State of Florida. The loan is an unsecured obligation that will be guaranteed by GFL and certain of its subsidiaries.

GFL is opportunistically pursuing the Bond Offering in advance of the maturity of its 3.750% Senior Secured Notes due 2025, with a view to moving more of its debt from secured to unsecured, consistent with an investment grade capital structure, extending its related debt maturities and preserving balance sheet flexibility.

The Bonds being offered in the Bond Offering have not been, and will not be, registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Bonds are being offered only to qualified institutional buyers as defined under Rule 144A of the Securities Act.

This release shall not constitute an offer to sell or a solicitation of an offer to buy any security, nor shall there be any offer, solicitation or sale of any security in any state or jurisdiction in which such an offer, solicitation, or sale would be unlawful.

About GFL

GFL, headquartered in Vaughan, Ontario, is the fourth largest diversified environmental services company in North America, providing a comprehensive line of solid waste management, liquid waste management and soil remediation services through its platform of facilities throughout Canada and in more than half of the U.S. states. Across its organization, GFL has a workforce of more than 20,000 employees.

Forward-Looking Information

This release includes certain "forward-looking statements", including statements relating to the potential for an offering and issuance of the Bonds and the use of proceeds therefrom. In some cases, but not necessarily in all cases, forward-looking statements can be identified by the use of forward looking terminology such as "plans", "targets", "expects" or "does not expect", "is expected", "an opportunity exists", "is positioned", "estimates", "intends", "assumes", "anticipates" or "does not anticipate" or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", "will" or "will be taken", "occur" or "be achieved". In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances contain forward-looking statements. Forward-looking statements are not historical facts, nor guarantees or assurances of future performance but instead represent management's current beliefs, expectations, estimates and projections regarding future events and operating performance. Forward-looking statements are necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by GFL as of the date of this release, are subject to inherent uncertainties, risks and changes in circumstances that may differ materially from those contemplated by the forward-looking statements. Important factors that could cause actual results to differ, possibly materially, from those indicated by the forward-looking statements include, but are not limited to, the "Risk Factors" section of GFL's annual information form for the year ended December 31, 2023 and GFL's other periodic filings with the U.S. Securities and Exchange Commission and the securities commissions or similar regulatory authorities in Canada. These factors are not intended to represent a complete list of the factors that could affect GFL. However, such risk factors should be considered carefully. There can be no assurance that such estimates and assumptions will prove to be correct. You should not place undue reliance on forward-looking statements, which speak only as of the date of this release. GFL undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.

For more information:
Patrick Dovigi
+1 905-326-0101
pdovigi@gflenv.com

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SOURCE GFL Environmental Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is the amount of the proposed bond offering by GFL Environmental (GFL)?

GFL Environmental (GFL) has announced a proposed offering of US$210 million in tax-exempt industrial revenue bonds.

What is the purpose of GFL's (GFL) bond offering?

The purpose is to finance or refinance solid waste disposal facilities in Florida, move more debt from secured to unsecured, extend debt maturities, and preserve balance sheet flexibility.

Who will issue the bonds for GFL Environmental (GFL)?

The Florida Development Finance will issue the Solid Waste Disposal Revenue Bonds for GFL Environmental (GFL).

Are the bonds being offered by GFL (GFL) registered under the Securities Act?

No, the bonds being offered by GFL (GFL) have not been and will not be registered under the Securities Act of 1933.