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Waste Connections plans senior notes offering

Published 2024-06-11, 11:42 a/m

TORONTO - Waste Connections (TSX:WCN), Inc. (TSX/NYSE: NYSE:WCN), a North American integrated waste services company, announced its intention to offer senior unsecured notes in an underwritten public offering in the U.S. and private placements in Canada. The company aims to use the proceeds to repay part of its Canadian dollar-denominated debt under its existing credit facility.

The offering of these notes, which are to be senior unsecured obligations of Waste Connections, is contingent on market conditions and other factors. CIBC (TSX:CM) Capital Markets, TD (TSX:TD) Securities, and Scotiabank (TSX:BNS) are serving as joint book-running managers and underwriters for the offering.

The notes will be made available through a shelf registration statement filed with the U.S. Securities and Exchange Commission on September 1, 2021, and in Canada, the notes will be offered privately by a Canadian offering memorandum.

Prospective investors can obtain copies of the preliminary prospectus supplement and the accompanying base prospectus for the U.S. offering, and the Canadian Offering Memorandum for the Canadian placements, through the aforementioned financial institutions.

Waste Connections provides non-hazardous waste collection, transfer, disposal, and recycling services, as well as renewable fuel generation. The company operates in 46 U.S. states and six Canadian provinces, serving approximately nine million customers. Additionally, Waste Connections offers oilfield waste treatment and intermodal services for cargo and solid waste containers in the Pacific Northwest.

The company emphasizes its commitment to Environmental, Social, and Governance (ESG) efforts, focusing on reducing emissions, increasing resource recovery, and enhancing safety and employee engagement as part of its long-term value-creation strategy.

The information in this article is based on a press release statement from Waste Connections.

In other recent news, Waste Connections has been the subject of several analyst upgrades. BMO (TSX:BMO) Capital increased its share price target for Waste Connections from $182 to $186, citing anticipated margin improvements and potential opportunities from heightened mergers and acquisitions activity.

Similarly, RBC (TSX:RY) Capital raised its price target for the company from $182 to $196, underscoring the company's consistent performance and strategic capital allocation. Oppenheimer also upgraded its price target for Waste Connections to $180 from $170, following investor meetings with the company's CFO.

These recent developments also include Waste Connections declaring a regular quarterly cash dividend of $0.285 per common share. This decision aligns with the company's strategy of consistently delivering value to its shareholders. The dividend will be paid out to shareholders on record by the close of business on a specified date in May 2024.

These adjustments and announcements reflect a positive outlook for Waste Connections, with analysts from BMO Capital, RBC Capital, and Oppenheimer expressing confidence in the company's strategic positioning and potential for growth. While these are recent developments, they offer insight into the company's operational plans and financial health, as perceived by industry analysts.

InvestingPro Insights

As Waste Connections (TSX/NYSE: WCN) looks to optimize its financial strategy through the offering of senior unsecured notes, investors are evaluating the company's performance and potential. With a solid market capitalization of $43.27 billion, Waste Connections shows notable stability in the waste management industry. The company's commitment to ESG efforts aligns with a growing trend among investors seeking sustainable and responsible investment opportunities.

An InvestingPro Tip worth noting is Waste Connections' consistent history of raising its dividend, having done so for 8 consecutive years. This could signal a reliable income stream for investors, particularly those looking for steady returns in the current market environment. Additionally, the company has been profitable over the last twelve months, reinforcing its financial health.

InvestingPro Data highlights a P/E ratio of 54.06, suggesting that the company is trading at a high earnings multiple, which may indicate investor confidence in its future growth prospects. However, the adjusted P/E ratio for the last twelve months as of Q1 2024 is slightly lower at 48.95, reflecting a more nuanced picture of the company's valuation. Furthermore, Waste Connections has experienced a revenue growth of 9.75% over the last twelve months as of Q1 2024, demonstrating its ability to expand its operations effectively.

For those interested in further analysis and additional InvestingPro Tips, there are currently 12 more tips available for Waste Connections on Investing.com. These tips provide deeper insights into the company's financials and market position, which can be accessed through the dedicated page: https://www.investing.com/pro/WCN. Remember to use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, enhancing your investment research with valuable, real-time data and expert analysis.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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