Waste Connections enters $800 million term loan to repay revolver

By Wendy Van Sickle

Columbus, Ohio, Nov. 1 – Waste Connections, Inc. closed on an $800 million term loan agreement on Monday, according to a press release.

Bank of America, NA is the administrative agent for the term loan, which was fully drawn at closing.

BofA Securities, Inc., JPMorgan Chase Bank, NA, PNC Capital Markets LLC and TD Securities (USA) LLC are the joint lead arrangers and bookrunners.

JPMorgan, PNC Bank, Canada Branch and Toronto-Dominion Bank, New York Branch are the co-syndication agents.

Truist Bank is the documentation agent.

The term loan matures on July 30, 2026, and proceeds are planned to be used to repay revolving borrowings under the company’s revolving credit and term loan agreement dated July 30, 2021.

Interest accrues at term SOFR with a credit spread adjustment of 10 basis points plus an applicable margin that ranges from 75 bps to 125 bps, based on the company’s debt rating.

A financial covenant limits the company’s ratio of consolidated total funded debt to consolidated EBITDA to no more than 3.75x or 4.25x during material acquisition periods.

Also on Oct. 31, Waste Connections amended the 2021 revolving credit and term loan agreement to replace Libor with term SOFR.

Waste Connections is a Folsom, Calif.-based solid waste services company.

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