Waste Connections announces convertible note
offering and stock repurchase
Folsom, CA—Waste Connections,
Inc. announced that it plans to offer, subject to market conditions,
$175 million aggregate principal amount of Convertible Senior
Notes due 2026 in a private offering. As part of the offering,
the Company also intends to grant the initial purchasers of the
notes a 30-day option to purchase an additional $25 million of
Waste Connections expects to
use a portion of the net proceeds from this offering to fund the
repurchase of approximately $65 million of its common stock under
its share repurchase program from purchasers of the notes in privately
negotiated transactions simultaneously with this offering. The
Company expects to use the remainder of the net proceeds to temporarily
reduce borrowings under its credit facility, pending the potential
redemption, in whole or in part, on or after May 7, 2006, of its
outstanding Floating Rate Convertible Subordinated Notes due 2022,
subject to market conditions.
The offering is being made only
to qualified institutional buyers pursuant to Rule 144A of the
Securities Act of 1933, as amended.
This announcement is neither
an offer to sell nor the solicitation of an offer to buy the notes
and shall not constitute an offer or solicitation in any jurisdiction
in which such offer or solicitation is unlawful.
Neither the notes nor the shares
issuable upon conversion have been registered under the Securities
Act or any state securities laws, and until so registered, may
not be offered or sold in the United States or any state absent
registration or an applicable exemption from the registration
requirements of the Securities Act.