Waste Connections plans to sell 12M shares of stock
Feb. 27 — Waste Connections Inc. plans to go to the stock market in a move that could raise hundreds of millions of dollars to pay down debt and potentially make acquisitions.
The Woodlands, Texas-based solid waste management company, after the stock markets closed Feb. 27, said it plans to issue 12 million shares of common stock in a public offering.
The offering will be made under the company’s current shelf registration statement with the U.S. Securities and Exchange Commission.
“Waste Connections intends to use the net proceeds to repay the unhedged portion of the outstanding borrowings under its senior revolving credit facility and to use any remaining net proceeds for general corporate purposes, which may include acquisitions of additional assets or businesses, the repayment of other indebtedness, capital expenditures and increasing working capital,” the company said in a statement.
Waste Connections stock closed at $ 31.82 per share Feb. 27. The sale of 12 million shares at that price could raise gross proceeds of almost $ 382 million. Paperwork filed with the SEC does not list a proposed price for the shares.
As of Dec. 31, Waste Connections had 110.9 million shares of common stock outstanding and the ability to issue up to a total of 250 million shares of common stock through current documents filed with the SEC.
It´s not the first time Waste Connections has issued shares of its stock to raise cash. In September 2008, the company announced it was selling 11 million shares, offering them at $ 32.50 each.
Contact Waste & Recycling News senior reporter Jim Johnson at jpjohnson@crain.com or 937-964-1289.
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