Waste Management of Canada is reported to be seeking up to C$750 million in new notes, with a sale possible as soon as this week, according to people familiar with the plans who asked not to be identified because they were not authorized to speak publicly.
Those discussions have centered on seven-year notes that initial market talks suggest would carry a yield roughly 0.75 percentage point above comparable government bonds. Market participants described that figure as the starting point for conversations, not a finalized pricing.
The company currently has a C$500 million bond outstanding with a 2.6% coupon that is scheduled to mature in September. The prospective note sale would provide new financing ahead of that existing debt maturity.
Company representatives were scheduled to speak with investors on Monday, sources said last week, as part of outreach linked to the contemplated transaction. The meetings are consistent with the preparatory steps companies typically take when gauging demand and refining pricing for a debt offering.
Context and mechanics
The talks referenced by sources focus on a seven-year tenor and an initial spread idea of about 0.75 percentage point over government yields. Sources emphasized that those figures reflect early-stage discussions and that final terms would depend on investor demand and the outcome of the investor meetings.
Timing - The prospective sale could occur as soon as this week, according to the same people, making the outreach to investors a near-term step in the financing process.
Implications
If completed, the transaction would give Waste Management of Canada fresh debt proceeds ahead of its September maturity, providing the company with the option to refinance or manage upcoming obligations. Sources cautioned that the situation remained fluid while discussions continued.