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TORONTO - Waste Connections, Inc. (TSX/NYSE: WCN), a North American integrated waste services company with a market capitalization of $50.5 billion, has priced a $500 million public offering of senior notes, the company announced today. The 5.25% Senior Notes, due in 2035, were priced at 99.874% of their face value. According to InvestingPro analysis, the company currently appears overvalued compared to its Fair Value estimate.
The offering is expected to close on June 4, 2025, with net proceeds of approximately $495 million, after underwriting fees and estimated expenses. The company plans to use these funds to repay a portion of its outstanding borrowings under its revolving credit facility. The company operates with a moderate level of debt, maintaining a debt-to-equity ratio of 1.09.
Joint book-running managers and underwriters for the offering include BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities. The offering is made under an effective shelf registration filed with the U.S. Securities and Exchange Commission on October 24, 2024.
Waste Connections serves around nine million customers across 46 U.S. states and six Canadian provinces, providing non-hazardous waste collection, transfer, and disposal services. The company, which generated $9.1 billion in revenue over the last twelve months with a healthy 42% gross margin, has demonstrated strong financial performance with a 10.7% revenue growth rate. The company’s operations encompass resource recovery through recycling and renewable fuels generation, non-hazardous oilfield waste treatment, and intermodal services for cargo and solid waste containers in the Pacific Northwest. InvestingPro subscribers can access 13 additional key insights about Waste Connections’ financial health and growth prospects.
This press release contains forward-looking statements regarding the offering and the anticipated use of proceeds. These statements are subject to risks and uncertainties that could cause actual results to differ from those projected. Notable among these projections is the company’s consistent dividend growth, having raised its dividend for 9 consecutive years, with a current dividend yield of 0.64%.
The information in this article is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy any securities.
In other recent news, Waste Connections, Inc. has projected its second-quarter 2025 revenue to be between $2.375 billion and $2.400 billion, with net income expected to range from $281.0 million to $285.5 million. The company also anticipates an adjusted EBITDA of $777 million to $785 million, approximately 32.7% of the projected revenue. Additionally, Waste Connections announced plans to offer senior unsecured notes, using the proceeds to repay part of its outstanding borrowings under its revolving credit facility. Moody’s Ratings recently upgraded Waste Connections’ senior unsecured rating to A3 from Baa1, reflecting the company’s strong operating performance and industry-leading margins. In analyst updates, JPMorgan raised its price target for Waste Connections to $230, maintaining an Overweight rating, while Oppenheimer reiterated its Outperform rating with a $216 price target. Waste Connections’ management also provided positive remarks on merger and acquisition activities, indicating a potential increase in such activities for the year. These developments highlight the company’s strategic financial maneuvers and its anticipated performance in the waste services industry.
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