GFL Environmental Inc. (NYSE: GFL) (TSX: GFL), a leading North American diversified environmental services company, has announced the amendment of its senior secured term loan. The company has reduced its borrowing rate to SOFR +200 basis points, down from the previous SOFR +250 basis points. This transaction was significantly oversubscribed, showcasing strong investor interest. Additionally, GFL has extended the maturity of the senior secured term loan from 2027 to 2031.
GFL’s Chief Executive Officer, Patrick Dovigi, highlighted the company’s strategic intent behind the repricing. “On the back of our recent credit rating upgrade, we opportunistically pursued the repricing of our senior secured term loan with a view to further increasing our free cash flow, extending our debt maturities and preserving balance sheet flexibility,” he stated. Dovigi further emphasized the significance of the transaction, noting that “Our ability to reprice our senior secured term loan on one of the tightest pricing terms since 2008 for a company with our credit quality is a continued testament to our high-quality, long-standing debt investors, many of whom have been with us for over a decade.”
Dovigi expressed the company’s ongoing commitment to deleveraging, stating that “Over the course of the last 12 months, we have been able to reduce our senior secured term loan spread by 110 basis points given our focus on delevering. We remain committed to achieving our net leverage target of between 3.65x and 3.85x by the end of the year and we believe this transaction will move us closer to our broader goal of achieving an investment grade credit rating in the medium term.”
GFL, headquartered in Toronto, is the fourth largest diversified environmental services company in North America. The company offers a wide range of services, including solid waste management, liquid waste management, and soil remediation. GFL operates across North America, with facilities in Canada and more than half of the U.S. states. With a workforce exceeding 20,000 employees, GFL remains a significant player in the environmental services industry.
This press release contains forward-looking statements, which are subject to uncertainties and risks. These statements are based on management’s current beliefs, expectations, and assumptions regarding future events and operating performance. Factors that could cause actual results to differ materially from the forward-looking statements are detailed in GFL’s filings with the U.S. Securities and Exchange Commission and Canadian securities regulators.
Investors should not place undue reliance on forward-looking statements, which speak only as of the date of this release. GFL undertakes no obligation to publicly update any forward-looking statement, except as required by applicable securities laws.
