Waste Connections, Inc. (WCN) priced a $600 million offering of 4.800% senior notes due 2036 at 99.732% of face value, yielding a net proceeds estimate of $593 million after underwriting fees and other expenses.
The company will use the proceeds, together with cash on hand, to repay a portion of the borrowings under its revolving credit facility, thereby reducing debt and improving leverage. WCN’s leverage ratio stood at 2.75 times at the end of 2025, and the new notes will help align its long‑term debt profile with its growth strategy.
The pricing of the notes follows a strong Q4 2025 earnings report in which WCN reported revenue of $2.373 billion and an adjusted EBITDA margin of 33.5%. The company’s full‑year 2025 results showed revenue of $9.467 billion and an adjusted EBITDA of $3.125 billion, a 33.0% margin. These figures underscore the firm’s solid operating performance and support its confidence in maintaining a healthy balance sheet.
Management highlighted that the lower‑cost, fixed‑rate notes provide a stable financing source that can be used to fund future acquisitions and infrastructure investments. CEO Ronald J. Mittelstaedt noted that the company’s balance‑sheet strength “provides significant optionality to execute on our strong acquisition pipeline, along with further increases in return of capital to shareholders, while also pursuing technology‑driven initiatives supporting continued growth.”
The 2036 maturity of the notes aligns with WCN’s long‑term debt strategy, giving the company a predictable interest expense stream for the next decade while freeing up liquidity for strategic initiatives. The offering is expected to close on March 16, 2026, subject to customary closing conditions.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.