Summary
Republic Services, Inc. (RSG) announced a significant debt offering on February 18, 2020, securing $1 billion in aggregate principal amount through the issuance of new notes. This includes $600 million of 2.300% notes due 2030 and $400 million of 3.050% notes due 2050. The company entered into an Underwriting Agreement with BofA Securities, Inc. and J.P. Morgan Securities LLC, acting as representatives for the underwriters. This debt issuance is a strategic move for Republic Services, likely aimed at bolstering its financial flexibility, potentially for future investments, acquisitions, or general corporate purposes. Investors should note the long-term nature of these debt obligations, with maturities extending to 2030 and 2050, and the stated interest rates, which will impact the company's future interest expense. The offering is expected to close around February 27, 2020.
Key Highlights
- 1Republic Services, Inc. issued $1 billion in aggregate principal amount of new debt.
- 2The issuance comprises $600 million of 2.300% notes due 2030.
- 3The issuance also includes $400 million of 3.050% notes due 2050.
- 4The notes were offered pursuant to an Underwriting Agreement with BofA Securities and J.P. Morgan Securities.
- 5The offering is expected to close on or about February 27, 2020.
- 6The debt issuance was registered under the Securities Act of 1933 via a Form S-3 registration statement.
- 7Relevant legal opinions and underwriting agreements are included as exhibits.