Waste Pro USA, Inc. (“Waste Pro”), a regional privately-held provider of waste collection, transfer, recycling and disposal services, announced today the completion of an upsized private offering of $500 million aggregate principal amount of its 5.5% Senior Notes due 2026. Waste Pro intends to use the aggregate net proceeds of the Notes and their Credit Agreement dated as of 2014, as amended at closing (the “ABL Facility”) to repay a portion of the amounts outstanding under their existing Credit Agreement as amended, to repay their Revolver Loan due 2019, to repay their Term Loan due 2020 and to pay the fees expenses incurred in connection with the foregoing and this offering.
The firm initially sought the amount of $450 million, but due to overwhelming interest from more than 200 investors, the offering was upsized to $500 million. Orders exceeded five times Waste Pro’s size with the offering led by Wells Fargo. “We are very pleased with the overwhelming response and confidence of the bond investors in the Waste Pro business model,” said John Jennings, Chairman and CEO of Waste Pro. “The improved credit structure is expected to reduce the company’s interest burden by as much as $14.5M annually giving the company flexibility to reinvest the interest savings back into the company through SMART growth initiatives to further de-lever the balance sheet,” stated Cort Sabina, Chief Financial Officer of Waste Pro. The Senior Notes were offered and sold only to qualified institutional buyers as defined in Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). The Senior Notes have not been and will not be registered under the Securities Act and may not be offered or sold in the United States absent registration unless pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act and other applicable securities laws.