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BRIEF-GFL Environmental Announces Acquisition Of WCA Waste Corp

Published 2020-08-12, 05:49 p/m
© Reuters.
GFL
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Aug 12 (Reuters) - GFL Environmental Inc GFL.TO :

* GFL ENVIRONMENTAL ANNOUNCES ACQUISITION OF WCA WASTE CORPORATION AND FURTHER EXPANSION OF U.S. FOOTPRINT

* DEAL FOR AGGREGATE PURCHASE PRICE OF US$1.212 BILLION

* PURCHASE PRICE FOR ACQUISITION WILL BE FINANCED IN PART WITH NET PROCEEDS OF A PRIVATE PLACEMENT OF US$600 MILLION OF EQUITY

* BALANCE OF PURCHASE PRICE WILL BE FINANCED THROUGH A COMBINATION OF CASH ON HAND AND CAPACITY UNDER CREDIT FACILITY

* DEAL EXPECTED TO BE ACCRETIVE TO FREE CASH FLOW

* WILL ALSO EXPLORE LONGER-TERM DEBT FINANCING OF US$500 MILLION TO US$750 MILLION

* INVESTORS HAVE AGREED TO SUBSCRIBE FOR AGGREGATE OF 28.6 MILLION PREFERRED SHARES AT US$21.00 PER SHARE

* 2020 REVENUE IS ESTIMATED TO BE BETWEEN $4,040 MILLION TO $4,080 MILLION

* 2020 NET LOSS IS ESTIMATED TO BE BETWEEN $459 MILLION AND $444 MILLION

* OUTLOOK EXCLUDES ADDITIONAL ACQUISITIONS THAT MAY CLOSE DURING YEAR, INCLUDING WCA TRANSACTION

* FY2020 REVENUE VIEW C$4.18 BILLION -- REFINITIV IBES DATA

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