Stericycle Announces Proposed Offering of $400.0 Million Aggregate Principal Amount of Senior Notes

Rhea-AI Summary

Stericycle (Nasdaq: SRCL) announced plans to offer $400 million in senior notes due 2029 to repay existing borrowings. These senior unsecured obligations are aimed at enhancing the company's financial position. The notes will be sold under Rule 144A and Regulation S, targeting qualified institutional buyers and non-U.S. persons. This move aligns with Stericycle's strategy of managing its debt effectively. However, the offering will not be registered under the Securities Act, limiting its sale in the U.S. without exemption.

Positive

• Plans to raise $400 million in senior notes improves liquidity and debt management.
• Proceeds will be used to repay outstanding borrowings, strengthening financial stability.

Negative

• Notes are not registered for sale in the U.S., limiting access to domestic investors.
• Dependence on market conditions introduces uncertainty in the offering process.

BANNOCKBURN, Ill., Nov. 09, 2020 (GLOBE NEWSWIRE) -- Stericycle, Inc. (Nasdaq: SRCL) (“Stericycle”) announced today that it intends to commence an offering of $400.0 million aggregate principal amount of senior notes due 2029 (the “Notes”), subject to market and other conditions. The Notes will be senior unsecured obligations of Stericycle. Stericycle intends to use the net proceeds from this offering of Notes to repay a portion of its outstanding borrowings under its senior credit facility and term loan facility.

The Notes and the related guarantees are being offered and sold to persons reasonably believed to be “qualified institutional buyers” pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes and the related guarantees will not be registered for sale under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.

This press release is being issued pursuant to Rule 135c under the Securities Act and shall not constitute an offer to sell or a solicitation of an offer to buy the Notes and the related guarantees or any other securities, and shall not constitute an offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Stericycle, Inc.

Stericycle, Inc. (Nasdaq: SRCL) is a U.S. based business-to-business services company and leading provider of compliance-based solutions that protect people and brands, promote health and safeguard the environment.  Stericycle serves customers in the U.S. and 17 countries worldwide with solutions for regulated medical waste management, secure information destruction, compliance, customer contact and brand protection.  

Cautionary Language

This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.  When we use words such as “believes,” “expects,” “anticipates,” “estimates,” “may,” “plan,” “will,” “goal” or similar expressions, we are making forward-looking statements.  Forward-looking statements are prospective in nature and are not based on historical facts, but rather on current expectations and projections of our management about future events and are therefore subject to risks and uncertainties, which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements.  Factors that could cause such differences include, among others, our proposed private offering of the Notes and the related guarantees and our use of the proceeds from such offering, developments in the COVID-19 pandemic and the resulting impact on the results of operations, precautions we have taken to safeguard the health and safety of our employees which may make certain of our business processes less efficient, measures taken by governmental authorities to prevent the spread of the COVID-19 virus which could disrupt our supply chain, result in disruptions in transportation services and restrictions on the ability of our employees to travel, result in temporary closure of our facilities or the facilities of our customers and suppliers, affect the volume of paper processed by our secure information destruction business and the revenue generated from the sale of sorted office paper (“SOP”), disruptions in our relationships with our employees as a result of certain cost-saving measures, an economic slowdown in the U.S. and other countries resulting from the outbreak of the COVID-19 virus, SOP pricing volatility, foreign exchange rate volatility in the jurisdictions in which we operate, the volume and size of any recall events, changes in governmental regulation of the collection, transportation, treatment and disposal of regulated waste or the proper handling and protection of personal and confidential information, the level of government enforcement of regulations governing regulated waste collection and treatment or the proper handling and protection of personal and confidential information, decreases in the volume of regulated wastes or personal and confidential information collected from customers, the ability to implement our enterprise resource planning (ERP) system, charges related to portfolio rationalization or the failure of divestitures to achieve the desired results, failure to consummate transactions with respect to non-core businesses, the obligations to service substantial indebtedness and comply with the covenants and restrictions contained in our credit agreements and notes, a downgrade in our credit rating resulting in an increase in interest expense, political, economic, inflationary and other risks related to our foreign operations, the outcome of pending or future litigation or investigations including with respect to the U.S.  Foreign Corrupt Practices Act, changing market conditions in the healthcare industry, competition and demand for services in the regulated waste and secure information destruction industries, failure to maintain an effective system of internal control over financial reporting, delays or failures in implementing remediation efforts with respect to existing or future material weaknesses, disruptions in or attacks on information technology systems, as well as other factors described in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2019 and subsequent Quarterly Reports on Forms 10-Q.  As a result, past financial performance should not be considered a reliable indicator of future performance, and investors should not use historical trends to anticipate future results or trends.  We disclaim any obligation to update or revise any forward-looking or other statements contained herein other than in accordance with legal and regulatory obligations.

FOR FURTHER INFORMATION CONTACT: Stericycle Investor Relations at 847-607-2012

FAQ

What is Stericycle's plan regarding the $400 million in senior notes due 2029?

Stericycle intends to offer $400 million in senior notes to enhance liquidity and repay existing borrowings.

How will Stericycle use the proceeds from the senior notes offering?

The net proceeds will be used to repay a portion of Stericycle's outstanding borrowings.

What are the risks involved with Stericycle's offering of senior notes?

The offering is subject to market conditions, and the notes are not registered for sale in the U.S., which may limit investor access.

What are the terms of the senior notes being offered by Stericycle?

The senior notes will be senior unsecured obligations due in 2029.

Who can purchase the senior notes being offered by Stericycle?

The notes are targeted at qualified institutional buyers and non-U.S. persons under Regulation S.