Republic Services Issues $650 Million of 1.450% Senior Notes Due 2031

Rhea-AI Summary

Republic Services has successfully closed a $650 million offering of 1.450% senior notes, due February 2031. The proceeds will finance the redemption of its 5.250% senior notes maturing in November 2021, which is set for September 10, 2020. This move is expected to save the company approximately $20 million in cash interest annually, benefiting from favorable market conditions and its strong credit rating. The new notes are unsecured and will have interest payments starting February 15, 2021.

Positive

• Reduction in annual cash interest costs by approximately $20 million.
• Successful capital raise leveraging favorable market conditions.

Negative

• None.

PHOENIX, Aug. 20, 2020 /PRNewswire/ -- Republic Services, Inc. ("Republic") (NYSE: RSG) today announced that it closed an offering of $650 million 1.450% senior notes due February 2031. The net proceeds of the offering will be used to finance the call of its 5.250% senior notes due November 2021. The redemption is expected to occur on September 10, 2020.

"We were able to capitalize on favorable market conditions and the quality of our credit to reduce interest costs and extend maturities," said Brian DelGhiaccio, executive vice president and chief financial officer. "These transactions will reduce cash interest by approximately $20 million per year."

The notes are unsecured and unsubordinated obligations with interest payable on February 15 and August 15 beginning February 15, 2021.

About Republic Services

Republic Services, Inc. is an industry leader in U.S. recycling and non-hazardous solid waste disposal. Through its subsidiaries, Republic's collection companies, transfer stations, recycling centers, landfills and environmental services provide effective solutions to make responsible recycling and waste disposal effortless for its customers across the country. Its 36,000 employees are committed to providing a superior experience while fostering a sustainable Blue Planet^® for future generations to enjoy a cleaner, safer and healthier world. For more information, visit RepublicServices.com, or follow us at Facebook.com/RepublicServices, @RepublicService on Twitter and @republic_services on Instagram.

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SOURCE Republic Services, Inc.

FAQ

What is the purpose of Republic Services' recent $650 million offering?

The offering is aimed at financing the redemption of its 5.250% senior notes due November 2021.

When is the redemption of the 5.250% senior notes scheduled?

The redemption is scheduled for September 10, 2020.

How much will Republic Services save in cash interest with the new senior notes?

Republic Services expects to save approximately $20 million annually.

When will the interest on the new senior notes begin?

Interest payments on the new senior notes will begin on February 15, 2021.

What is the maturity date for Republic Services' new senior notes?

The new senior notes are due on February 2031.