WASTE CONNECTIONS ANNOUNCES PRICING OF $500 MILLION OF SENIOR NOTES

Rhea-AI Summary

Waste Connections has priced an underwritten public offering of $500 million aggregate principal of its 3.200% Senior Notes due in 2032, at a public price of 99.925% of face value. The offering is set to close on March 9, 2022, with net proceeds estimated at $494.8 million, to be used for repaying borrowings under its revolving credit facility. Major underwriters include BofA Securities and J.P. Morgan. The offering is part of the company's effective shelf registration statement with the SEC.

Positive

• The offering will allow Waste Connections to reduce its outstanding debt, improving its financial flexibility.
• The interest rate of 3.200% is relatively low, suggesting favorable borrowing conditions.

Negative

• Issuing senior notes increases the company's debt load, which may impact future leverage ratios.
• Market conditions may affect the pricing of future financing options due to interest rate changes.

TORONTO, March 2, 2022 /PRNewswire/ -- Following the previous announcement of the launch of a senior notes offering, Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") announced today that it has priced an underwritten public offering (the "Offering") of $500 million aggregate principal amount of its 3.200% Senior Notes due 2032 (the "Notes") at a price to the public of 99.925% of their face value.  The Offering is expected to close on March 9, 2022, subject to customary closing conditions.  Net proceeds to Waste Connections from the Offering are expected to be approximately $494.8 million, after deducting underwriting fees and estimated Offering expenses, and are expected to be used to repay a portion of the borrowings outstanding under its revolving credit facility provided under its credit agreement.

BofA Securities, J.P. Morgan, MUFG and Wells Fargo Securities are acting as joint book-running managers and underwriters for the Offering.  The Offering is being made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") on September 1, 2021 (the "Registration Statement").  Copies of the prospectus supplement and the accompanying base prospectus for the Offering may be obtained by contacting BofA Securities, Inc. at 200 North College Street, 3rd Floor, Charlotte, North Carolina 28255-0001, Attention: Prospectus Department, toll-free at 1-800-294-1322 or at dg.prospectus_requests@bofa.com, J.P. Morgan Securities LLC at 383 Madison Avenue, New York, New York, 10179, Attn: Investment Grade Syndicate Desk, 3rd Floor, or by telephone at (212) 834-4533, MUFG Securities Americas Inc. at 1221 Avenue of the Americas, 6th Floor, New York, New York 10020, Attention: Capital Markets Group, or toll-free at 877-649-6848 or Wells Fargo Securities, LLC at 608 2nd Avenue South, Suite 1000, Minneapolis, Minnesota 55402, Attn: WFS Customer Service, toll-free at 1-800-645-3751 or at wfscustomerservice@wellsfargo.com.  Copies of the prospectus supplement and the accompanying base prospectus for the Offering will also be available on the SEC's website at http://www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor will there be any offer, solicitation or sale of the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. 

About Waste Connections

Waste Connections is an integrated solid waste services company that provides non-hazardous waste collection, transfer and disposal services, along with resource recovery primarily through recycling and renewable fuels generation. Waste Connections serves more than eight million residential, commercial and industrial customers in mostly exclusive and secondary markets across 43 states in the U.S. and six provinces in Canada. Waste Connections also provides non-hazardous oilfield waste treatment, recovery and disposal services in several basins across the U.S., as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995 ("PSLRA"), including "forward-looking information" within the meaning of applicable Canadian securities laws.  These forward-looking statements are neither historical facts nor assurances of future performance and reflect Waste Connections' current beliefs and expectations regarding future events, including the potential Offering and the Company's use of proceeds.  These forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "may," "might," "will," "believes," "expects," "estimates," "intends," "could," "should," "anticipates" or the negative thereof or comparable terminology, although not all forward-looking statements contain these identifying words.  All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable Canadian securities laws.  Forward-looking statements involve risks, assumptions and uncertainties.  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, risk factors detailed in the preliminary prospectus supplement and the accompanying base prospectus, which are both a part of the Registration Statement, the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2021 and those risk factors set forth from time to time in the Company's other filings with the SEC and the securities commissions or similar regulatory authorities in Canada.  You should not place undue reliance on forward-looking statements, which speak only as of the date of this press release.   Waste Connections undertakes no obligation to update the forward-looking statements set forth in this press release, whether as a result of new information, future events, or otherwise, unless required by applicable securities laws.

CONTACT:
Mary Anne Whitney / (832) 442-2253	Joe Box / (832) 442-2153
maryannew@wasteconnections.com	joe.box@wasteconnections.com

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SOURCE Waste Connections, Inc.

FAQ

What is Waste Connections' recent senior notes offering?

Waste Connections announced a public offering of $500 million of 3.200% Senior Notes due 2032.

When is Waste Connections' senior notes offering expected to close?

The offering is expected to close on March 9, 2022.

How much net proceeds will Waste Connections receive from the offering?

Waste Connections expects to receive approximately $494.8 million in net proceeds from the offering.

What will Waste Connections use the proceeds from the senior notes offering for?

The proceeds will be used to repay a portion of its outstanding borrowings under its revolving credit facility.

Who are the underwriters for Waste Connections' senior notes offering?

BofA Securities, J.P. Morgan, MUFG, and Wells Fargo Securities are the joint book-running managers for the offering.