GFL Environmental Inc. Prices Offering of US$210 Million of Tax-Exempt Industrial Revenue Bonds at 4.375%

Rhea-AI Summary

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has announced the pricing of US$210 million in aggregate principal amount of Florida Development Finance Solid Waste Disposal Revenue Bonds at 4.375%. The Bonds, which were significantly oversubscribed, have an initial mandatory tender date of October 1, 2031. The proceeds will be 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 Bond Offering ahead of the maturity of its 3.750% Senior Secured Notes due 2025, aiming to shift more debt from secured to unsecured, extend debt maturities, and maintain balance sheet flexibility. The Bonds are being offered only to qualified institutional buyers under Rule 144A of the Securities Act and have not been registered under the Securities Act.

Positive

• Successful pricing of US$210 million in Solid Waste Disposal Revenue Bonds
• Significantly oversubscribed offering indicates strong investor interest
• Lower interest rate of 4.375% compared to existing 3.750% Senior Secured Notes
• Extension of debt maturity to October 1, 2031
• Strategic move towards an investment grade capital structure

Negative

• Increase in overall debt load
• Potential dilution of existing debt holders' claims

VAUGHAN, ON, Oct. 1, 2024 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL") today announced the pricing of US$210 million in aggregate principal amount of Florida Development Finance Corporation (the "Issuer") Solid Waste Disposal Revenue Bonds (the "Bonds") at 4.375% in a transaction that was significantly oversubscribed. The Bonds will have an initial mandatory tender date of October 1, 2031. 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 offering of the Bonds (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

What is the amount and interest rate of GFL Environmental's (GFL) new bond offering?

GFL Environmental Inc. (GFL) has priced US$210 million in Solid Waste Disposal Revenue Bonds at an interest rate of 4.375%.

When is the initial mandatory tender date for GFL's (GFL) newly issued bonds?

The initial mandatory tender date for GFL Environmental's (GFL) newly issued bonds is October 1, 2031.

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

GFL Environmental (GFL) is pursuing this bond offering to finance or refinance solid waste disposal facilities in Florida, shift more debt from secured to unsecured, extend debt maturities, and maintain balance sheet flexibility.

Are GFL Environmental's (GFL) new bonds registered under the Securities Act?

No, GFL Environmental's (GFL) new bonds are not registered under the Securities Act and are being offered only to qualified institutional buyers under Rule 144A.