Waste Connections to offer senior unsecured notes

TORONTO - Waste Connections, Inc. (TSX/NYSE: WCN), a North American integrated waste services company with a market capitalization of $50.7 billion and trading near its 52-week high of $201.66, announced plans today to offer senior unsecured notes in a public offering, subject to market and other conditions. The company intends to utilize the net proceeds from the sale to repay part of its outstanding borrowings under its revolving credit facility.

The notes, referred to as senior notes, will be senior unsecured obligations of Waste Connections. According to InvestingPro data, the company currently operates with a moderate level of debt, maintaining a debt-to-equity ratio of 1.09. The offering is being managed by BofA Securities, J.P. Morgan, PNC Capital Markets LLC, and Truist Securities, all serving as joint book-running managers and underwriters.

This financial move comes after the company filed an effective shelf registration statement with the U.S. Securities and Exchange Commission on October 24, 2024. Interested parties can obtain a copy of the preliminary prospectus supplement and the accompanying base prospectus for the offering through the contact details provided by the respective financial institutions or by visiting the SEC’s website.

Waste Connections serves approximately nine million residential, commercial, and industrial customers across 46 states in the U.S. and six provinces in Canada. The company, which generated revenues of $9.07 billion in the last twelve months with a robust gross profit margin of 42%, provides services encompassing non-hazardous waste collection, transfer, and disposal, as well as resource recovery through recycling and renewable fuels generation. Additionally, Waste Connections provides non-hazardous oilfield waste treatment and intermodal services for cargo and solid waste containers in the Pacific Northwest.

The company’s environmental, social, and governance efforts are seen as integral to its business strategy, with initiatives aimed at reducing emissions, increasing resource recovery, and improving safety and employee engagement. InvestingPro analysis reveals the company has raised its dividend for 9 consecutive years, with a recent dividend growth rate of 10.5%. For deeper insights into Waste Connections’ financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The press release contains forward-looking statements, which are not historical facts but rather the company’s expectations for future events, including the potential offering and use of proceeds. These statements involve risks and uncertainties, and actual results could differ materially from those projected.

The information for this article is based on a press release statement from Waste Connections, Inc.

In other recent news, Waste Connections, Inc. reported first-quarter 2025 results that exceeded analyst expectations, with adjusted earnings per share at $1.13 compared to the forecasted $1.08. The company’s revenue reached $2.23 billion, slightly surpassing the anticipated $2.22 billion and marking a 7.5% increase from the previous year. Waste Connections projects second-quarter revenue to be between $2.375 billion and $2.400 billion, with net income estimated at $281.0 million to $285.5 million. Moody’s Ratings recently upgraded Waste Connections’ senior unsecured rating to A3, reflecting expectations of strong operating performance and steady cash flow. JPMorgan analyst Tami Zakaria raised the firm’s stock target for Waste Connections to $230, citing the company’s strong market positioning and growth prospects. Oppenheimer maintained its Outperform rating with a $216 price target, noting the company’s steady performance despite broader economic challenges. Waste Connections’ management highlighted significant merger and acquisition activity, expecting to surpass their average level for the year.

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