8-KMaterial AgreementsOther EventsExhibits & Filings

WASTE MANAGEMENT INC 8-K Report, Material Agreement (Jun 8, 2010)

Filed June 8, 2010For Securities:WM

Summary

Waste Management, Inc. (WM) filed an 8-K on June 7, 2010, to report on the commencement of an underwritten public offering of $600 million aggregate principal amount of 4.75% Senior Notes due 2020. These notes are fully and unconditionally guaranteed by its wholly owned subsidiary, WM Holdings. The offering was conducted under the company's existing registration statement and involved several prominent underwriters, including Banc of America Securities, Barclays Capital, Citigroup Global Markets, and Goldman, Sachs & Co. The filing details the Underwriting Agreement, which outlines the terms and conditions for the issuance, sale, indemnification, and other standard provisions. The notes will be issued under an indenture originally dated September 10, 1997, with The Bank of New York Mellon Trust Company, N.A. as trustee. The closing of this significant debt issuance was scheduled for June 8, 2010. This transaction represents a move by Waste Management to raise substantial capital through the debt markets.

Key Highlights

  • 1Waste Management, Inc. announced a public offering of $600 million in 4.75% Senior Notes due 2020.
  • 2The notes are guaranteed by the wholly owned subsidiary, Waste Management Holdings, Inc. (WM Holdings).
  • 3The offering is being conducted under the company's Form S-3 Registration Statement (No. 333-162059).
  • 4Key underwriters include Banc of America Securities LLC, Barclays Capital Inc., Citigroup Global Markets Inc., and Goldman, Sachs & Co.
  • 5The Underwriting Agreement, dated June 3, 2010, outlines the terms, conditions, and customary provisions for the debt issuance.
  • 6The notes will be issued under an existing indenture dated September 10, 1997, with The Bank of New York Mellon Trust Company, N.A. as trustee.
  • 7The closing of the note issuance was scheduled for June 8, 2010.

Frequently Asked Questions

This 8-K filing announces Waste Management, Inc.'s (WM) commencement of a $600 million public offering of its 4.75% Senior Notes due 2020 and the associated material definitive agreements.

The offering represents a substantial capital raise for Waste Management through the issuance of long-term debt. The proceeds will likely be used for general corporate purposes, which could include funding operations, acquisitions, or refinancing existing debt. The 4.75% interest rate indicates the cost of this borrowed capital.

The 4.75% Senior Notes due 2020 are fully and unconditionally guaranteed by Waste Management's wholly owned subsidiary, Waste Management Holdings, Inc. (WM Holdings).

The notes are 4.75% Senior Notes due in 2020, meaning they will pay a fixed coupon of 4.75% annually and mature in 10 years from the approximate issuance date. They are issued under an indenture dated September 10, 1997.