Yesterday, Republic Services, Inc. (RSG) priced a private offering of $600 million of 5.25% senior notes due in November 15, 2021. The net proceeds of the offering is expected to be used to finance 7.875% Senior Notes due in 2013, of which $450 million is outstanding, and a portion of 4.250% Senior Subordinated Convertible Debentures due in 2034, of which $230 million is outstanding. The offering is subject to market and other conditions and is expected to close on November 25, 2009.
 
The notes will be in the general senior unsecured obligations and will mature on November 15, 2021 with interests payable semi-annually on May 15 and November 15, beginning May 15, 2010. 

The company is offering the notes relying upon an exemption from registration under the Securities Act of 1933,  for an offer and sale of securities that does not involve a public offering. The notes have not been registered under the Securities Act and may not be offered or sold in the United States in the absence of a registration or an applicable exemption from registration. 

The company generated free cash flow of $493 million year-to-date and reduced its total debt by $647 million. Republic is still on track to meet its full year cash flow guidance of $700 million to $725 million. 

During the third quarter of 2009, both Standard & Poor’s and Fitch raised their outlook on Republic’s long term credit rating which recognizes significant debt reduction and the success of the merger integration. The company’s ability to adjust its cost structure in a weak economic environment is also remarkable. Thus, Republic’s long term prospects remain strong.
Read the full analyst report on “RSG”
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