Republic Services says tender response up slightly to $575.4 million

New York, July 5 – Republic Services, Inc. gave final results for its cash tender offers to purchase up to $600 million of notes from four series issued by Republic and subsidiary Browning-Ferris Industries, LLC.

The response increased by $505,000 compared to the amounts submitted for purchase by the early tender deadline.

Republic Services said in a news release that it accepted all $575.4 million of tendered notes for purchase.

The final results of the tender are as follows:

• $250,073,000 of Republic’s $650 million of 6.2% notes due March 1, 2040 with priority level one, up from $249,468,000 as of the early tender deadline. Pricing was set using a spread of 150 basis points for a total purchase price of $1,338.33;

• $214.33 million of Republic’s $600 million of 5.7% notes due May 15, 2041 with priority level two. The response was unchanged from the early deadline. Pricing was set using a spread of 145 bps for a total purchase price of $1,276.00;

• $17,215,000 of Browning-Ferris’ $165.2 million of 7.4% debentures due Sept. 15, 2035 with priority level three. The response was unchanged from the early deadline. Pricing was set using a spread of 170 bps for a total purchase price of $1,422.21; and

• $93,782,000 of Republic’s $275,674,000 of 6.086% notes due March 15, 2035 with priority level four. The response was unchanged from the early deadline. Pricing was set using a spread of 150 bps for a total purchase price of $1,275.94.

Pricing was set at 2 p.m. ET on June 20 using the bid-side price of the 2.5% Treasury due Feb. 15, 2046 plus the spreads listed above.

The total purchase price includes an early tender premium of $50.00 for each $1,000 principal amount of notes tendered by the early tender date.

Holders will also receive accrued interest to but excluding the settlement date of July 5.

The tender offers began on June 6 and ended at 11:59 p.m. ET on July 1.

On June 20, the company announced pricing and said it raised the tender cap to $600 million from the original $500 million.

Barclays (800 438-3242 or 212 528-7581), BofA Merrill Lynch (888 292-0070 or 980 387-3907) and JPMorgan (866 834-4666 or 212 834-3424) are the lead dealer managers. Global Bondholder Services Co. is the tender agent and information agent.

Republic Services is a waste collection company based in Phoenix.

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