GFL Environmental prices $750 million senior notes due 2031

GFL Environmental Inc. (NYSE: GFL, TSX: GFL) has priced a private offering of $750 million in senior notes due 2031, carrying a stated coupon of 5.625%, or approximately 4.500% after accounting for cross currency interest rate swaps the company intends to enter into.

The notes will be issued by a U.S. wholly owned subsidiary of GFL and guaranteed by GFL and certain of its other subsidiaries. The offering is available only to qualified institutional buyers under Rule 144A, and outside the United States under Regulation S. In Canada, the notes will be offered on a private placement basis in select provinces.

GFL said it intends to use the proceeds to repay amounts drawn on its revolving credit facility and to cover fees and expenses. The company said the move is aimed at maximizing available liquidity to fund a portion of the cash consideration and related costs for its previously announced acquisition of SECURE Waste Infrastructure Corp., as well as other growth initiatives.

The company stated the offering is expected to lower its average effective borrowing rate and be leverage neutral, consistent with its stated goal of maintaining leverage in the mid 3.0x range.

The notes have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States without registration or an applicable exemption.

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