Summary
Republic Services, Inc. (RSG) filed an 8-K on July 5, 2016, to report on two significant financial events that occurred on July 4-5, 2016. Primarily, the company successfully completed an underwritten public offering of $500 million in aggregate principal amount of 2.900% senior notes due 2026. These new notes are unsubordinated and unsecured obligations of Republic Services. The proceeds from this new debt issuance are earmarked to fund a significant portion of its previously announced tender offers. Specifically, Republic Services intends to use the net proceeds, along with borrowings from its credit facilities, to purchase up to $600 million of its existing senior notes and debentures, which carry higher interest rates (ranging from 5.700% to 7.400%). This move indicates a strategic effort to refinance existing debt at a lower cost.
Key Highlights
- 1Completed a $500 million public offering of 2.900% senior notes due 2026.
- 2The new notes are unsubordinated and unsecured obligations of Republic Services.
- 3Proceeds will be used to fund tender offers for existing, higher-interest debt.
- 4Tender offers target up to $600 million in principal amount of notes due 2040, 2041, and 2035, and debentures due 2035.
- 5The refinancing strategy aims to reduce the company's overall interest expense.
- 6Filed the Fifth Supplemental Indenture to the existing Indenture as an exhibit.
- 7Announced final tender results via a press release filed as an exhibit.