Waste management announces pricing of $500 million senior notes
Houston--(business wire)--waste management, inc. (nyse: wm) today announced that it has priced an underwritten public offering of $500 million aggregate principal amount of 2.4% senior notes due may 15, 2023 under an effective shelf registration statement previously filed with the securities and exchange commission. the notes will be fully and unconditionally guaranteed by the company’s wholly-owned subsidiary, waste management holdings, inc. the notes have been assigned ratings of a- by standard & poor’s, bbb by fitch and baa2 by moody’s. the offering is expected to close on may 16, 2016. the company plans to use the net proceeds of the offering, together with cash on hand, to repay $500 million principal amount of its outstanding 2.6% senior notes when they mature in september 2016, plus accrued and unpaid interest of $6.5 million. pending such application of the net proceeds, the company anticipates that it may temporarily pay down short-term borrowings under its u.s. revolving credit facility used for working capital and temporarily invest in short-term investments. citigroup global markets inc., merrill lynch, pierce, fenner & smith incorporated and mizuho securities usa inc. are acting as joint book-running managers of the offering. in addition, scotia capital (usa) inc., pnc capital markets llc, comerica securities, inc., drexel hamilton, llc, and siebert brandford shank & co., l.l.c. are acting as co-managers of the offering. copies of the final prospectus supplement and related prospectus for this offering may be obtained by visiting edgar on the sec website at www.sec.gov or, upon request, from any of the joint book-running managers at: (1) citigroup global markets inc., c/o broadridge financial solutions, 1155 long island avenue, edgewood, ny 11717; toll-free: 1-800-831-9146; e-mail: prospectus@citi.com; (2) merrill lynch, pierce, fenner & smith incorporated, 200 north college street, nc1-004-03-43, charlotte, nc 28255-0001, attn: prospectus department; toll-free: 1-800-294-1322; email: dg.prospectus_requests@baml.com; or (3) mizuho securities usa inc., 320 park avenue – 12th floor, new york, ny 10022, attn: debt capital markets; toll free: 1-866-271-7403. this press release does not constitute an offer to sell or the solicitation of an offer to buy the notes described herein, nor shall there be any sale of these notes in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. the notes will be offered only by means of a prospectus, including the prospectus supplement relating to the notes, meeting the requirements of section 10 of the securities act of 1933, as amended. about waste management waste management, inc., based in houston, texas, is the leading provider of comprehensive waste management services in north america. through its subsidiaries, the company provides collection, transfer, recycling and resource recovery, and disposal services. it is also a leading developer, operator and owner of landfill gas-to-energy facilities in the united states. the company’s customers include residential, commercial, industrial, and municipal customers throughout north america. this press release may contain forward-looking statements. the company, from time to time, provides estimates of financial and other data, comments on expectations relating to future periods and makes statements of opinion, view or belief about current and future events. statements relating to future events and performance, including the use of proceeds from the offering and the closing timing of the offering, are "forward-looking statements.” you should view these statements with caution. these statements are not guarantees of future performance, circumstances or events. they are based on the facts and circumstances known to us as of the date the statements are made. our business is subject to uncertainties, risks and other influences, many of which we do not control. any of these factors, either alone or taken together, could have a material adverse effect on us and could cause actual results to be materially different from those set forth in such forward-looking statement. we assume no obligation to update any forward-looking statement, including financial estimates and forecasts, whether as a result of future events, circumstances or developments or otherwise. information regarding factors that could materially affect results and the accuracy of any forward-looking statements made by the company may be found in part i, item 1a of the company’s annual report on form 10-k for the year ended december 31, 2015.
