The Globe and Mail reports in its Wednesday edition that GFL Environmental is selling a majority interest in its environmental services unit to cut debt. The Globe's Tim Kiladze and Robyn Doolittle write that this complex transaction, however, which includes taking on additional debt, limits some benefits for GFL. It is selling 56 per cent of the division to Apollo Global Management and BC Partners. The deal, announced on Tuesday, will provide $6.2-billion in cash proceeds to help reduce GFL's substantial debt load. However, Apollo and BC Partners will also be adding about $4-billion in debt to the business, of which GFL will retain a 44-per-cent ownership. While GFL can use the cash proceeds to lower its existing debt, it will still hold a significant interest in a company that will now carry billions of dollars in new debt. On a GFL conference call Tuesday, Goldman Sachs analyst Jerry Revich referred to the deal as a "leveraged recapitalization," which is a structure commonly used by private equity funds that involves purchasing a business and financing the deal largely with debt. Three billion dollars in new debt comes from a JPMorgan loan, with an additional $1-billion from a non-cash interest PIK note.