Republic Services Announces $1.2 Billion Notes Offering

Published 18/03/2025, 22:38
Republic Services Announces $1.2 Billion Notes Offering

PHOENIX, AZ – Republic Services, Inc. (NYSE:RSG), a leader in the environmental services industry with a market capitalization of $73.15 billion, has announced the sale of $1.2 billion in notes, according to a recent 8-K filing with the Securities and Exchange Commission (SEC). InvestingPro data shows the company maintains a perfect Piotroski Score of 9, indicating strong financial health and operational efficiency. The company disclosed the agreement to sell $500 million aggregate principal amount of its 4.750% notes due in 2030 and $700 million aggregate principal amount of its 5.150% notes due in 2035.

The transaction, which took place on Monday, is expected to close on or about March 24, subject to customary closing conditions. These notes will be issued under an existing indenture, with the addition of a Sixteenth Supplemental Indenture, between Republic Services and U.S. Bank Trust Company, National Association, as trustee. The company operates with a moderate level of debt, currently maintaining $12.96 billion in total debt with a debt-to-equity ratio of 1.14.

The sale was conducted via an underwriting agreement dated March 17, with BofA Securities, Inc., J.P. Morgan Securities LLC, and Wells Fargo (NYSE:WFC) Securities, LLC serving as representatives of the underwriters. The offering of these notes has been registered under the Securities Act of 1933.

Republic Services’ decision to issue these notes is part of its capital management strategy. The company, which generated $16.03 billion in revenue over the last twelve months and has maintained dividend payments for 23 consecutive years, typically uses note proceeds for general corporate purposes, including refinancing existing debt, funding capital expenditures, or supporting ongoing operations and growth initiatives. According to InvestingPro analysis, RSG is currently trading above its Fair Value, with the stock price near its 52-week high of $240.95.

Investors and stakeholders can find more details about the notes and the terms of the sale in the exhibits attached to the 8-K filing, including the Underwriting Agreement and forms of the Sixteenth Supplemental Indenture and the notes. Additionally, the legal opinion regarding the validity of the notes issued by Covington & Burling LLP is also filed with the SEC.

This report is based on a press release statement and the information contained in the SEC filing. Republic Services has made no further comment on the use of proceeds from the offering or their long-term financial strategy. For a comprehensive analysis of Republic Services’ financial health, valuation metrics, and growth prospects, investors can access the detailed Pro Research Report available on InvestingPro, which covers over 1,400 top US stocks with expert insights and actionable intelligence.

In other recent news, Republic Services has acquired Shamrock Environmental, a company specializing in industrial waste and wastewater services. This acquisition is part of Republic Services’ strategic expansion in waste management and environmental services. While the financial terms of the deal remain undisclosed, the acquisition is expected to enhance Republic Services’ capabilities in managing liquid waste across numerous states. In analyst updates, TD Cowen raised the price target for Republic Services to $235, maintaining a Hold rating, citing strategic mergers and acquisitions as contributing factors. Meanwhile, Stifel analysts increased their price target to $257 and reaffirmed a Buy rating, highlighting potential margin expansion and sustainability investments. Raymond (NSE:RYMD) James also raised its price target to $243, maintaining an Outperform rating, and noted the company’s growth through organic means and strategic acquisitions. Lastly, Oppenheimer increased its price target to $238, following Republic Services’ strong financial performance and successful mergers and acquisitions.

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