GFL Environmental Inc. Prices Upsized Private Offering of Senior Secured Notes

Rhea-AI Summary

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) announced the pricing of US$1 billion in aggregate principal amount of 6.750% senior secured notes due 2031 in a significantly oversubscribed transaction. The offering was upsized by US$300 million over the previously announced size. GFL intends to use the net proceeds to repay its Term Loan A Facility and most outstanding borrowings under its Revolving Credit Facility, resulting in expected annualized cash interest savings of approximately $5 million. The Notes Offering will extend a portion of the Company's debt maturity to 2031 and provide greater flexibility for future refinancings.

Positive

• Significantly oversubscribed offering
• Expected annualized cash interest savings of approximately $5 million
• Portion of debt maturity extended to 2031
• Greater flexibility for future refinancings

Negative

• None.

VAUGHAN, ON, Nov. 29, 2023 /PRNewswire/ - GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) ("GFL" or the "Company") today announced the pricing of US$1 billion in aggregate principal amount of 6.750% senior secured notes due 2031 (the "Notes") in a transaction that was significantly oversubscribed. The offering was upsized by US$300 million over the previously announced offering size of US$700 million. GFL intends to use the net proceeds from the offering of the Notes (the "Notes Offering") to repay in full its Term Loan A Facility and substantially all of the outstanding borrowings under its Revolving Credit Facility. After giving effect to the Notes Offering, the percentage of GFL's fixed interest rate debt will shift from 72% to 88%. The interest rate on the Notes is 35 basis points lower than the current 7.10% rate on the borrowings to be repaid, resulting in expected annualized cash interest savings of approximately $5 million. The Notes Offering will also extend a portion of the Company's debt maturity to 2031 and provide GFL with greater flexibility for future refinancings.

The Notes being offered by GFL in the Notes 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 Notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the Securities Act. In Canada, the Notes are to be offered and sold on a private placement basis in certain provinces of Canada.

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 Notes by GFL 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, 2022 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 did GFL Environmental Inc. announce?

GFL Environmental Inc. announced the pricing of US$1 billion in aggregate principal amount of 6.750% senior secured notes due 2031 in a significantly oversubscribed transaction.

What is the purpose of the Notes Offering?

GFL intends to use the net proceeds to repay its Term Loan A Facility and most outstanding borrowings under its Revolving Credit Facility, resulting in expected annualized cash interest savings of approximately $5 million.

What will the Notes Offering achieve for GFL?

The Notes Offering will extend a portion of the Company's debt maturity to 2031 and provide greater flexibility for future refinancings.