Waste Connections Announces Repayment Of Senior Notes

Rhea-AI Summary

Waste Connections (WCN) has successfully repaid all outstanding senior notes totaling $1.5 billion due between 2022 and 2027. This repayment was funded by proceeds from a $650 million offering of 2.20% Senior Notes due 2032 and $850 million of 2.95% Senior Notes due 2052, along with borrowing from its credit facility. The company anticipates a $115 million charge in Q3 2021 financial results. CFO Mary Anne Whitney expressed optimism about extending maturities and reducing interest costs, enhancing financial flexibility for future growth.

Positive

• Successful repayment of $1.5 billion in senior notes enhances financial stability.
• Issuance of new senior notes lowers interest costs, improving long-term financial outlook.
• Increased financial flexibility allows for better positioning for growth.

Negative

• Expected $115 million charge in Q3 2021 may impact quarterly earnings.

TORONTO, Sept. 20, 2021 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") today announced the repayment of all of its outstanding senior notes under its master note purchase agreements (the "Notes") with an aggregate principal amount of $1.500 billion and maturities ranging from 2022 through 2027.  The Company used the proceeds from its recently completed registered offering of $650 million aggregate principal amount of 2.20% Senior Notes due 2032 and $850 million aggregate principal amount of 2.95% Senior Notes due 2052 plus incremental borrowings under its revolving credit facility to fund the Notes repayment along with the associated make-whole premium and related fees, for which the Company expects to reflect a charge of approximately $115 million in its third quarter 2021 financial results. 

"We are extremely pleased to have capitalized on favorable market conditions and the quality of our credit to extend maturities while also reducing interest costs," said Mary Anne Whitney, Executive Vice President and Chief Financial Officer of Waste Connections.  "Locking in attractive long term rates, while also extinguishing the more restrictive covenants associated with the Notes, further enhances our financial flexibility and positions us for continued growth."

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.  The Company serves more than seven million residential, commercial and industrial customers in mostly exclusive and secondary markets across 44 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.  For more information, visit Waste Connections at www.wasteconnections.com.  

Safe Harbor and 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 and operating performance. These forward-looking statements can be identified by the use of forward-looking terminology such as "believes," "expects," "intends," "may," "might," "will," "could," "should" or "anticipates," or the negative thereof or comparable terminology, or by discussions of strategy. 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 and uncertainties.  Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, risk factors detailed from time to time in the Company's 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 did Waste Connections announce on September 20, 2021?

Waste Connections announced the repayment of $1.5 billion in outstanding senior notes.

How was the repayment of senior notes funded?

The repayment was funded through a combination of new senior notes totaling $1.5 billion and incremental borrowings from its credit facility.

What impact will the repayment have on Waste Connections' financial results?

The company expects to report a $115 million charge in its Q3 2021 financial results due to the repayment.

What are the benefits of the new senior notes issued by Waste Connections?

The new senior notes reduce interest costs and extend maturities, enhancing financial flexibility for growth.