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Waste Connections Inc. Message Board

  • coepilot coepilot Apr 24, 2002 10:10 PM Flag

    Explain this one...

    Waste Connections Announces Private Placement Offering of $150 Million Convertible Subordinated Notes
    FOLSOM, Calif.--(BUSINESS WIRE)--April 24, 2002--Waste Connections, Inc. (Nasdaq:WCNX - news) today announced the sale of $150 million aggregate principal amount of its Floating Rate Convertible Subordinated Notes due 2022 with an option to issue up to an additional $25 million of Notes, in a private placement pursuant to Rule 144A and Regulation S under the Securities Act of 1933. The Notes will be convertible into shares of Waste Connections' common stock at a conversion price of $48.39 per share.

    The Company expects that the net proceeds of this offering will be used to repay debt under its credit agreement facility with a group of banks and for general corporate purposes.

    This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. The Notes have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

    Waste Connections, Inc. is a regional, integrated, solid waste services company that provides solid waste collection, transfer, disposal and recycling services in secondary markets of the Western U.S. The Company serves more than 925,000 commercial, industrial and residential customers. Waste Connections, Inc. was founded in September 1997 and is headquartered in Folsom, California.

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    • The sale of $150 million is backed by the option to turn some of it (or maybe all) into shares at 48.00+. This new debt is being taken on by an "informed" investor or group thereof (probably major insurance companies, etc.)The lender is apparently comfortable with the stock's potential upside and must have some firm beleif of the company's growth potential. This morning, a large first quarter profit was reported. The drop in yesterday's after-hours trading was probably due to the dilution effect; i.e., IF that 150 mill is converted to stock there will be significantly more stockholders in the company, and EPS, etc., will also reflect that dilution. Offical earnings reports still look good, and there's some big investor(s) out there who see a bright star in WCNX.

 
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