CALCULATION OF REGISTRATION FEE
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Title of Each Class of Securities to be Registered
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Amount to be
Registered |
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Maximum
Offering Price per Unit |
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Maximum
Aggregate Offering Price |
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Amount of
Registration Fee |
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3.050% Senior Notes due 2050
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| | | $ | 500,000,000 | | | | | | 98.525% | | | | | $ | 492,625,000 | | | | | $ | 63,943(1) | | |
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Per Note
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Total
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Price to public(1)
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| | | | 98.525% | | | | | $ | 492,625,000 | | |
Underwriting discount
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| | | | 0.875% | | | | | $ | 4,375,000 | | |
Proceeds, before expenses, to us
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| | | | 97.650% | | | | | $ | 488,250,000 | | |
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BofA Securities
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J.P. Morgan
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MUFG
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Wells Fargo Securities
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CIBC Capital Markets
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PNC Capital Markets LLC
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BBVA
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Fifth Third Securities
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TD Securities
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US Bancorp
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SunTrust Robinson Humphrey
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Citizens Capital Markets
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Scotiabank
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Prospectus Supplement
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Page
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| | | | S-iv | | | |
| | | | S-1 | | | |
| | | | S-2 | | | |
| | | | S-5 | | | |
| | | | S-8 | | | |
| | | | S-12 | | | |
| | | | S-13 | | | |
| | | | S-14 | | | |
| | | | S-26 | | | |
| | | | S-29 | | | |
| | | | S-30 | | | |
| | | | S-32 | | | |
| | | | S-38 | | | |
| | | | S-39 | | | |
| | | | S-39 | | | |
| | | | S-39 | | | |
| | | | S-40 | | |
| | |
Year Ended December 31,
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2019
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2018
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2017
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(audited)
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(in thousands of U.S. dollars)
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STATEMENT OF OPERATIONS DATA: | | | | | | | | | | | | | | | | | | | |
Revenues
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| | | $ | 5,388,679 | | | | | $ | 4,922,941 | | | | | $ | 4,630,488 | | |
Operating expenses: | | | | | | | | | | | | | | | | | | | |
Cost of operations
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| | | | 3,198,757 | | | | | | 2,865,704 | | | | | | 2,704,775 | | |
Selling, general and administrative
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| | | | 546,278 | | | | | | 524,388 | | | | | | 509,638 | | |
Depreciation
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| | | | 618,396 | | | | | | 572,708 | | | | | | 530,187 | | |
Amortization of intangibles
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| | | | 125,522 | | | | | | 107,779 | | | | | | 102,297 | | |
Impairments and other operating items
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| | | | 61,948 | | | | | | 20,118 | | | | | | 156,493 | | |
Operating income
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| | | | 837,778 | | | | | | 832,244 | | | | | | 627,098 | | |
Interest expense
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| | | | (147,368) | | | | | | (132,104) | | | | | | (125,297) | | |
Interest income
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| | | | 9,777 | | | | | | 7,170 | | | | | | 5,173 | | |
Other income, net
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| | | | 5,704 | | | | | | (170) | | | | | | 1,536 | | |
Income before income tax provision
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| | | | 705,891 | | | | | | 707,140 | | | | | | 508,510 | | |
Income tax (provision) benefit
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| | | | (139,210) | | | | | | (159,986) | | | | | | 68,910 | | |
Net income
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| | | | 566,687 | | | | | | 547,154 | | | | | | 577,420 | | |
Less: Net income attributable to noncontrolling interests
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| | | | 160 | | | | | | (283) | | | | | | (603) | | |
Net income attributable to Waste Connections
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| | | $ | 566,841 | | | | | $ | 546,871 | | | | | $ | 576,817 | | |
BALANCE SHEET DATA: | | | | | | | | | | | | | | | | | | | |
Cash and equivalents
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| | | $ | 326,738 | | | | | $ | 319,305 | | | | | $ | 433,815 | | |
Working capital surplus
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| | | | 123,370 | | | | | | 206,068 | | | | | | 374,269 | | |
Property and equipment, net
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| | | | 5,516,347 | | | | | | 5,168,996 | | | | | | 4,820,934 | | |
Total assets
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| | | | 13,737,695 | | | | | | 12,627,329 | | | | | | 12,014,681 | | |
Long-term debt and notes payable
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| | | | 4,353,782 | | | | | | 4,153,465 | | | | | | 3,899,572 | | |
Total equity
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| | | | 6,938,354 | | | | | | 6,460,188 | | | | | | 6,274,070 | | |
OTHER FINANCIAL DATA: | | | | | | | | | | | | | | | | | | | |
Adjusted EBITDA(a)
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| | | $ | 1,673,554 | | | | | $ | 1,566,418 | | | | | $ | 1,460,525 | | |
Adjusted Free Cash Flow(a)
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| | | $ | 916,777 | | | | | $ | 879,901 | | | | | $ | 763,891 | | |
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Years Ended December 31,
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2019
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2018
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2017
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(audited)
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(in thousands of U.S. dollars)
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Net income attributable to Waste Connections
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| | | $ | 566,841 | | | | | $ | 546,871 | | | | | $ | 576,817 | | |
Plus: Net income attributable to noncontrolling interests
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| | | | (160) | | | | | | 283 | | | | | | 603 | | |
Plus (less): Income tax provision (benefit)
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| | | | 139,210 | | | | | | 159,986 | | | | | | (68,910) | | |
Plus: Interest expense
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| | | | 147,368 | | | | | | 132,104 | | | | | | 125,297 | | |
Less: Interest income
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| | | | (9,777) | | | | | | (7,170) | | | | | | (5,173) | | |
Plus: Depreciation and amortization
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| | | | 743,918 | | | | | | 680,487 | | | | | | 632,484 | | |
Plus: Closure and post-closure accretion
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| | | | 14,471 | | | | | | 12,997 | | | | | | 11,781 | | |
Plus: Impairments and other operating items
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| | | | 61,948 | | | | | | 20,118 | | | | | | 156,493 | | |
Plus (less): Other expense (income), net
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| | | | (5,704) | | | | | | 170 | | | | | | (1,536) | | |
Adjustments: | | | | | | | | | | | | | | | | | | | |
Plus: Transaction-related expenses(1)
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| | | | 12,335 | | | | | | 8,607 | | | | | | 5,700 | | |
Plus: Fair value changes to certain equity awards(2)
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| | | | 3,104 | | | | | | 9,205 | | | | | | 16,357 | | |
Plus: Integration-related and other expenses(3)
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| | | | — | | | | | | 2,760 | | | | | | 10,612 | | |
Adjusted EBITDA
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| | | $ | 1,673,554 | | | | | $ | 1,566,418 | | | | | $ | 1,460,525 | | |
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Years Ended December 31,
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2019
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2018
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2017
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(audited)
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(in thousands of U.S. dollars)
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Net cash provided by operating activities
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| | | $ | 1,540,547 | | | | | $ | 1,411,235 | | | | | $ | 1,187,260 | | |
Plus (less): Change in book overdraft
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| | | | (2,564) | | | | | | (839) | | | | | | 8,241 | | |
Plus: Proceeds from disposal of assets
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| | | | 3,566 | | | | | | 5,385 | | | | | | 28,432 | | |
Plus: Excess tax benefit associated with equity-based compensation
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| | | | — | | | | | | — | | | | | | — | | |
Less: Capital expenditures for property and equipment
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| | | | (634,406) | | | | | | (546,145) | | | | | | (479,287) | | |
Less: Distributions to noncontrolling interests
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| | | | (570) | | | | | | (103) | | | | | | — | | |
Adjustments:
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Payment of contingent consideration recorded in earnings(1)
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| | | | — | | | | | | 11 | | | | | | 10,012 | | |
Cash received for divestitures(2)
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| | | | (2,376) | | | | | | (2,030) | | | | | | (21,100) | | |
Transaction-related items(3)
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| | | | 12,335 | | | | | | 8,607 | | | | | | 5,700 | | |
Integration-related and other expenses(4)
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| | | | — | | | | | | 2,760 | | | | | | 10,602 | | |
Pre-existing Progressive Waste share-based grants(5)
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| | | | 4,810 | | | | | | 5,722 | | | | | | 17,037 | | |
Synergy bonus(6)
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| | | | — | | | | | | — | | | | | | 11,798 | | |
Tax effect(7)
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| | | | (4,565) | | | | | | (4,752) | | | | | | (14,804) | | |
Adjusted Free Cash Flow
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| | | $ | 916,777 | | | | | $ | 879,901 | | | | | $ | 763,891 | | |
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As of December 31, 2019
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Actual
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As Adjusted
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As Further Adjusted
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(in thousands of U.S. dollars)
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Cash and equivalents
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| | | $ | 326,738 | | | | | $ | 326,738 | | | | | $ | 513,664 | | |
Long-term debt and notes payable: | | | | | | | | | | | | | | | | | | | |
Revolver under credit agreement(1)
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| | | $ | 916,247 | | | | | $ | 321,247 | | | | | $ | 71,247 | | |
Term loan under credit agreement
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| | | | 700,000 | | | | | | 700,000 | | | | | | 650,000 | | |
Existing senior notes
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| | | | 2,750,000 | | | | | | 3,350,000 | | | | | | 3,350,000 | | |
Notes offered hereby
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| | | | — | | | | | | — | | | | | | 500,000 | | |
Notes payable to sellers and other third parties
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| | | | 9,638 | | | | | | 9,638 | | | | | | 9,638 | | |
Total long-term debt and notes payable
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| | | $ | 4,375,885 | | | | | $ | 4,380,885 | | | | | $ | 4,580,885 | | |
Equity: | | | | | | | | | | | | | | | | | | | |
Common shares
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| | | $ | 4,135,343 | | | | | | 4,135,343 | | | | | | 4,135,343 | | |
Additional paid-in-capital
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| | | | 154,917 | | | | | | 154,917 | | | | | | 154,917 | | |
Accumulated other comprehensive loss
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| | | | (10,963) | | | | | | (10,963) | | | | | | (10,963) | | |
Retained earnings
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| | | | 2,654,207 | | | | | | 2,654,207 | | | | | | 2,654,207 | | |
Total Waste Connections’ equity
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| | | | 6,933,504 | | | | | | 6,933,504 | | | | | | 6,933,504 | | |
Noncontrolling interest in subsidiaries
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| | | | 4,850 | | | | | | 4,850 | | | | | | 4,850 | | |
Total equity
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| | | $ | 6,938,354 | | | | | $ | 6,938,354 | | | | | $ | 6,938,354 | | |
Total capitalization
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| | | $ | 11,314,239 | | | | | $ | 11,319,239 | | | | | $ | 11,519,239 | | |
Underwriter
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Principal
amount |
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BofA Securities, Inc.
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| | | $ | 125,928,000 | | |
J.P. Morgan Securities LLC
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| | | | 125,928,000 | | |
MUFG Securities Americas Inc.
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| | | | 68,214,000 | | |
Wells Fargo Securities, LLC
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| | | | 68,214,000 | | |
CIBC World Markets Corp
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| | | | 17,143,000 | | |
PNC Capital Markets LLC.
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| | | | 15,714,000 | | |
BBVA Securities Inc.
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| | | | 13,429,000 | | |
Fifth Third Securities, Inc
|
| | | | 13,429,000 | | |
TD Securities (USA) LLC.
|
| | | | 13,429,000 | | |
U.S. Bancorp Investments, Inc
|
| | | | 13,429,000 | | |
SunTrust Robinson Humphrey, Inc.
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| | | | 11,429,000 | | |
Citizens Capital Markets, Inc.
|
| | | | 6,857,000 | | |
Scotia Capital (USA) Inc.
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| | | | 6,857,000 | | |
Total
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| | | $ | 500,000,000 | | |
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Paid by us
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Per note
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| | | | 0.875% | | |
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Page
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Three Months Ended
March 31, 2018 |
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Fiscal Year Ended December 31,
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2017
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2016
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2015
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2014
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2013
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Ratio of earnings to fixed charges
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| | | | 5.6 | | | | | | 4.8 | | | | | | 4.7 | | | | | | (0.8) | | | | | | 6.5 | | | | | | 5.0 | | |
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