Waste Connections Announces Senior Notes Offering

Rhea-AI Summary

Waste Connections (WCN) has announced plans to offer senior notes through an underwritten public offering. The company intends to use the net proceeds to repay a portion of its outstanding revolving credit facility borrowings. The notes will be senior unsecured obligations of the company.

The offering will be managed by joint book-running managers and underwriters including BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities. The offering will be conducted under an effective shelf registration statement filed with the SEC on October 24, 2024.

Positive

• Refinancing of revolving credit facility debt with potentially better terms through senior notes
• Strong backing from major financial institutions as underwriters indicating market confidence

Negative

• Increased long-term debt obligations through new senior notes issuance
• Potential impact on company's debt service obligations and financial flexibility

Insights

Financial Analyst

Waste Connections is refinancing revolving credit debt with senior notes, likely to lock in rates and improve debt structure.

Waste Connections (WCN) has announced plans to issue senior unsecured notes in a public offering, with proceeds earmarked specifically to repay existing revolving credit facility debt. This strategic refinancing move suggests management is actively optimizing the company's debt structure, potentially to lock in longer-term rates or extend debt maturities.

The offering will be executed through major financial institutions including BofA Securities, J.P. Morgan, PNC Capital Markets, and Truist Securities acting as joint book-running managers. This lineup of tier-one financial institutions indicates strong banking relationships and market confidence in WCN's credit quality.

This type of debt rotation is a standard financial management practice that doesn't necessarily change the company's overall leverage but can provide several advantages. By replacing revolving credit borrowings (which typically have variable interest rates) with fixed-rate senior notes, WCN may be protecting against potential interest rate fluctuations while extending its debt maturity profile.

Without specific details on the offering size, interest rate, or maturity, it's difficult to quantify the exact financial impact. However, this transaction appears to be part of normal financial management rather than signaling any fundamental change in the company's capital allocation strategy or operational direction. The move indicates proactive treasury management by WCN's leadership team to maintain financial flexibility while potentially optimizing borrowing costs.

TORONTO, May 28, 2025 /PRNewswire/ -- Waste Connections, Inc. (TSX/NYSE: WCN) ("Waste Connections" or the "Company") announced today that it plans to proceed, subject to market and other conditions, to offer senior notes (the "Notes") in an underwritten public offering (the "Offering"). The Notes will be senior unsecured obligations of the Company. Waste Connections intends to use the net proceeds from the Offering to repay a portion of the borrowings outstanding under its revolving credit facility.

BofA Securities, J.P. Morgan, PNC Capital Markets LLC and Truist Securities are acting as joint book-running managers and underwriters for the Offering. The Offering will be made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC") on October 24, 2024 (the "Registration Statement"). Copies of the preliminary prospectus supplement and the accompanying base prospectus for the Offering may be obtained by contacting BofA Securities, Inc. at 201 North Tryon Street, NC1-022-02-25, Charlotte, NC 28255-0001, Attention: Prospectus Department, at dg.prospectus_requests@bofa.com or by telephone at 1-800-294-1322, J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717 or by email at prospectus-eq_fi@jpmchase.com and postsalemanualrequests@broadridge.com, PNC Capital Markets LLC at 300 Fifth Avenue, 10th Floor, Pittsburgh, PA 15222, Attention: Debt Capital Markets, Fixed Income Transaction Execution, at pnccmprospectus@pnc.com or by telephone toll-free at 855-881-0697 or Truist Securities, Inc. at 50 Hudson Yards, 70th Floor, New York, NY 10001, Attention: Prospectus Department, at TruistSecurities.prospectus@Truist.com or by telephone at 800-685-4786. Copies of the preliminary 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, including by rail, along with resource recovery primarily through recycling and renewable fuels generation. The Company serves approximately nine million residential, commercial and industrial customers in mostly exclusive and secondary markets across 46 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. and Canada, as well as intermodal services for the movement of cargo and solid waste containers in the Pacific Northwest. Waste Connections views its Environmental, Social and Governance ("ESG") efforts as integral to its business, with initiatives consistent with its objective of long-term value creation and focused on reducing emissions, increasing resource recovery of both recyclable commodities and clean energy fuels, reducing reliance on off-site disposal for landfill leachate, further improving safety and enhancing employee engagement.

Safe Harbor and Forward-Looking Information

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 are often identified by the words "may," "might," "believes," "thinks," "expects," "estimate," "continue," "intends" or other words of similar meaning. All of the forward-looking statements included in this press release are made pursuant to the safe harbor provisions of the PSLRA and applicable securities laws in Canada. Forward-looking statements involve risks, assumptions and uncertainties. Forward-looking statements in this press release include, but are not limited to, statements about the timing and other elements of the Offering. 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, 2024, 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 the purpose of WCN's senior notes offering in May 2025?

Waste Connections is offering senior notes to repay a portion of the borrowings outstanding under its revolving credit facility.

Who are the underwriters for Waste Connections' 2025 notes offering?

The joint book-running managers and underwriters are BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities.

What type of notes is Waste Connections (WCN) offering?

Waste Connections is offering senior unsecured notes through an underwritten public offering.

When was the shelf registration statement filed for WCN's notes offering?

The shelf registration statement was filed with the SEC on October 24, 2024.