GFL Environmental Inc. (“GFL”), headquartered in the Greater Toronto Area, recently announced that it priced its previously announced private offering of US$500 million in aggregate principal amount of 5.125% senior secured notes due 2026 and US$275 million in aggregate principal amount of 7.000% unsecured senior notes due 2026 and in a transaction that was significantly oversubscribed.
GFL previously issued US$400 million in aggregate principal amount of its 7.000% unsecured senior notes due 2026 and the Unsecured Notes will be treated as “Additional Notes” under the indenture governing the Unsecured Notes and will be treated as a single series with the Existing Unsecured Notes under such indenture. In addition to the Notes, GFL expects to raise a minimum of $300 million of equity from existing shareholders of GFL (the “Equity Financing”). The closing of the Equity Financing and the Notes Offering are not contingent on each other.
GFL intends to use the net proceeds from the offering of the Notes, together with the Equity Financing (i) to fund certain acquisitions, including a pending acquisition, (ii) to repay outstanding borrowings under its revolving credit facility, (iii) to pay related fees and expenses in connection therewith and (iv) for general corporate purposes.
GFL also announced that it has entered into a definitive agreement to acquire County Waste of Virginia, LLC and its subsidiaries. The transaction, which is expected to close in January 2020, is subject to receipt of customary regulatory approvals.
County Waste offers solid waste management services, including collection, transportation, transfer, recycling and disposal of non-hazardous solid waste for municipal, residential and commercial and industrial customers in Virginia and Eastern Pennsylvania. County Waste’s collection and hauling operations utilize a fleet of over 410 trucks that service over 410,000 residential customers and 19,000 commercial customers. County Waste owns six transfer stations and one material recovery facility and operates a landfill in Troutville, Virginia.