Waste Management, Inc. (WM, Financial) has announced the commencement and pricing of a significant underwritten public offering, totaling $5.2 billion in aggregate principal amount of senior notes. This strategic financial maneuver is aimed at bolstering the company's financial position and supporting its ongoing growth initiatives.
The offering includes the issuance of five tranches of senior notes: $1 billion of 4.500% Senior Notes due 2028, $700 million of 4.650% Senior Notes due 2030, $750 million of 4.800% Senior Notes due 2032, $1.5 billion of 4.950% Senior Notes due 2035, and $1.25 billion of 5.350% Senior Notes due 2054. These notes will be fully and unconditionally guaranteed by Waste Management's wholly-owned subsidiary, Waste Management Holdings, Inc.
The issuance and sale of these notes are being conducted under an underwriting agreement with several prominent financial institutions, including J.P. Morgan Securities LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, and Scotia Capital (USA) Inc. The agreement outlines the terms and conditions for the issuance, including indemnification and contribution obligations.
Proceeds from this offering are expected to be used for general corporate purposes, which may include the repayment of outstanding debt under Waste Management's existing credit facilities. Notably, some of the underwriters or their affiliates are lenders under the company's credit agreements and may receive a portion of the net proceeds from this offering.
The closing of the issuance and sale of the notes is anticipated to occur on November 4, 2024, subject to customary closing conditions. The notes will be issued under an indenture dated September 10, 1997, with The Bank of New York Mellon Trust Company, N.A. serving as the trustee.
This strategic financial initiative underscores Waste Management's commitment to maintaining a robust capital structure while positioning itself for future growth and operational excellence. Investors and stakeholders will be keenly observing the impact of this offering on the company's financial health and market performance.
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