Gfl Environmental Inc Stock Price, News & Analysis

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has announced plans to participate in a US$210 million tax-exempt industrial revenue bond offering. The Florida Development Finance will issue the bonds, with proceeds loaned to a GFL subsidiary to finance or refinance solid waste disposal facilities in Florida. This unsecured obligation will be guaranteed by GFL and certain subsidiaries.

GFL is pursuing this offering ahead of its 3.750% Senior Secured Notes due 2025, aiming to shift more debt from secured to unsecured, aligning with an investment grade capital structure. The company intends to extend debt maturities and maintain balance sheet flexibility. The bonds will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and have not been registered under the Securities Act.

GFL Environmental Inc. (NYSE: GFL) (TSX: GFL) has announced that HPS Investment Partners, has converted 14,565,543 Series A Preferred Shares into 16,000,000 subordinate voting shares. The converted shares were subsequently sold in a block trade at US$39.60 per share. This conversion and sale represent a significant change in GFL's capital structure and ownership composition. The transaction may impact the company's stock price and voting power distribution among shareholders.

GFL Environmental reported strong Q2 2024 results, surpassing guidance and raising full-year 2024 outlook for the second time. Key highlights include:

- Revenue of $2,060.0 million, up 11.1% excluding divestitures
- Adjusted EBITDA of $591.1 million, up 13.9% excluding divestitures
- Adjusted EBITDA margin of 28.7%, up 90 basis points
- Solid Waste price increase of 6.5% excluding divestitures
- Year-to-date acquisitions generating ~$100 million in annualized revenue

GFL raised its full-year 2024 guidance, projecting Adjusted EBITDA of $2,240-$2,250 million and an Adjusted EBITDA margin of 28.4%, up 170 basis points year-over-year. The company is exploring potential asset sales, including its Environmental Services business, to accelerate deleveraging and fund stock buybacks.

GFL Environmental (NYSE: GFL) has announced a quarterly cash dividend of US$0.014 per subordinate and multiple voting share for Q2 2024. The dividend is payable on July 31, 2024, to shareholders recorded by July 15, 2024. This dividend is categorized as an eligible dividend under Canada's Income Tax Act.

GFL Environmental has successfully amended its $725 million senior secured term loan. The amendment reduces the borrowing rate from SOFR +250 basis points to SOFR +200 basis points and extends the loan's maturity from 2027 to 2031. This move comes after a recent credit rating upgrade and was significantly oversubscribed. CEO Patrick Dovigi highlighted that this repricing will help increase free cash flow, extend debt maturities, and maintain balance sheet flexibility. Over the last 12 months, GFL has reduced its senior secured term loan spread by 110 basis points and aims to achieve a net leverage target between 3.65x and 3.85x by year-end. The company is also focusing on achieving an investment-grade credit rating in the medium term.

GFL Environmental Inc. (NYSE: GFL) will announce its Q2 2024 financial results on Wednesday, July 31, 2024, after market close. The company will hold an investor conference call on Thursday, August 1, 2024, at 8:30 am Eastern Time.

Participants can listen to the live audio webcast via the Investors page on GFL's website or join toll-free by dialing specific numbers in Canada and the United States. Pre-registration for the call is encouraged for quick access.

GFL Environmental announced the pricing of $500 million in 6.625% senior notes due 2032. The offering was significantly oversubscribed, resulting in an effective interest rate of 6.101% post-swap. The proceeds, along with cash on hand, will be used to redeem all $500 million of GFL's 4.250% Senior Secured Notes due 2025, which have a 4.805% effective rate. This move aligns with GFL's strategy to transition more debt from secured to unsecured and extend debt maturities while preserving balance sheet flexibility. The refinancing is expected to be leverage neutral and have minimal impact on free cash flow due to offsetting cash tax savings.

GFL Environmental announced plans for a private offering of US$500 million in senior notes due 2032. The proceeds will be used to redeem the company's existing US$500 million 4.250% Senior Secured Notes due 2025, along with related fees and interest. The new notes will be issued by a US subsidiary and guaranteed by GFL and certain other subsidiaries. The company aims to shift more debt from secured to unsecured, extend debt maturities, and maintain balance sheet flexibility. The refinancing is expected to be leverage neutral, with incremental interest expenses offset by cash tax savings, making a minimal impact on free cash flow.

GFL Environmental announced the results of its annual general meeting held on May 15, 2024. Shareholders voted in favor of all proposed items, including the election of director nominees. Key votes included Patrick Dovigi (93.58% in favor), Dino Chiesa (78.95% in favor), and Violet Konkle (99.70% in favor). The final results will be available on SEDAR+ and EDGAR. GFL, headquartered in Vaughan, Ontario, is a leading environmental services firm in North America, with over 20,000 employees.