Date: November 17, 2006
Source: Waste Connections, Inc.
Waste Connections Announces Agreement to Acquire Integrated Operation From Waste Management and Refinancing of Senior Credit Facility
Waste Connections, Inc. (NYSE: WCN) today announced that it has signed an agreement to acquire certain operations in the Southeast from a subsidiary of Waste Management, Inc. The operations being acquired provide collection, transfer and disposal services with total revenue of approximately $22 million. Completion of the acquisition is subject to local consents, which are expected to be obtained within sixty days.
Waste Connections also announced that it has completed the refinancing of its senior credit facility. The refinancing reduces the Company's revolving credit facility from $850 million to $750 million, lowers its current interest rates on the facility, extends the revolving credit facility's maturity by an additional year to January 2012, and includes pre-approval to increase the facility size by an additional $250 million in the future. The Company currently has approximately $450 million utilized and an additional $550 million of either available or pre-approved capacity under its revolving credit facility.
Ronald J. Mittelstaedt, Chairman and Chief Executive Officer, said, "The reduction in borrowing costs to near investment grade pricing is a result of both the continuing improvement in our financial profile and the strong support of our lending group. We decreased the size of the credit facility to eliminate a portion of excess capacity put in place earlier this year for additional flexibility in redeeming our convertible notes, which we completed in the second quarter. We also are pleased to announce the Waste Management acquisition. This acquisition brings the year-to-date acquired annualized revenue either signed or closed to approximately $50 million."
Waste Connections, Inc. is an integrated solid waste services company that provides solid waste collection, transfer, disposal and recycling services in mostly secondary markets in the Western and Southern U.S. The Company serves more than one million residential, commercial and industrial customers from a network of operations in 22 states. The Company also provides intermodal services for the movement of containers in the Pacific Northwest. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California. For more information, visit the Waste Connections web site at www.wasteconnections.com.