Mr. Patrick Dovigi reports
GFL ENVIRONMENTAL INC. ANNOUNCES PROPOSED PRIVATE OFFERING OF SENIOR NOTES
GFL Environmental Inc. is planning to commence, subject to market and other conditions, a private offering of $500-million (U.S.) in aggregate principal amount of senior notes due 2032. GFL intends to use the net proceeds from the offering of the notes, together with cash on hand, to redeem all of GFL's outstanding $500-million (U.S.) aggregate principal amount of 4.250 per cent senior secured notes due 2025 and to pay related fees, premiums and accrued and unpaid interest on the 2025 secured notes. The notes will be issued by a U.S. wholly owned subsidiary of GFL and will be guaranteed by GFL and certain of its other subsidiaries.
GFL is opportunistically pursuing the note offering, with a view to moving more of its debt from secured to unsecured, consistent with an investment-grade capital structure, extending its related debt maturities and preserving balance sheet flexibility. The refinancing of the 2025 secured notes is expected to be leverage neutral. In addition, it is expected that any incremental interest expense incurred as a result of the note offering will be offset by cash tax savings, resulting in an immaterial impact to GFL's free cash flow.
The notes being offered in the notes offering have not been and will not be registered under the Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The notes are being offered only to qualified institutional buyers under Rule 144A and outside the United States in compliance with Regulation S under the securities act. In Canada, the notes are to be offered and sold on a private placement basis in certain provinces of Canada.
About GFL Environmental Inc.
GFL, headquartered in Vaughan, Ont., is the fourth-largest diversified environmental services company in North America, providing a comprehensive line of solid waste management, liquid waste management and soil remediation services through its platform of facilities throughout Canada and in more than half of the U.S. states. Across its organization, GFL has a work force of more than 20,000 employees.
We seek Safe Harbor.
© 2024 Canjex Publishing Ltd. All rights reserved.