Summary
Waste Management, Inc. (WM) announced on December 19, 2014, its intention to redeem its outstanding Senior Notes totaling approximately $946.8 million. This includes the 6.375% Senior Notes due March 2015, 7.125% Senior Notes due December 2017, and 7.375% Senior Notes due March 2019. The redemption is scheduled for January 20, 2015. This proactive debt management strategy aims to improve the company's capital structure. The redemption price will incorporate a make-whole premium, determined shortly before the redemption date, in addition to accrued interest. The company plans to fund this redemption using existing cash on hand, though it is also considering potential debt refinancing opportunities.
Key Highlights
- 1Waste Management, Inc. (WM) is redeeming $946.8 million in aggregate principal amount of Senior Notes.
- 2The redemption includes three series of notes: 6.375% due March 2015, 7.125% due December 2017, and 7.375% due March 2019.
- 3The redemption date is set for January 20, 2015.
- 4The redemption price will include a make-whole premium and accrued interest.
- 5The company intends to use cash on hand to fund the redemption.
- 6Potential debt refinancings are also being considered by the company.
Frequently Asked Questions
The total aggregate principal amount of Senior Notes being redeemed is approximately $946.8 million.
The redemption date is scheduled for January 20, 2015.
Waste Management plans to use cash on hand to fund the redemption of these notes. They are also considering potential debt refinancings.
A make-whole premium is an additional amount paid to bondholders above the face value of the bond when the issuer redeems the debt before its scheduled maturity. This compensates investors for the loss of future interest payments.