Republic Services to raise up to $680 million in private debt offering

Republic Services to raise up to $680 million

PHOENIX — Waste hauler Republic Services Inc. said Wednesday it has begun a private debt offering to raise as much as $680 million.

The Phoenix-based company said the proceeds from the sale of senior notes due 2021 will finance $450 million worth of outstanding notes due in 2013 and fund a portion of its $230 million debentures due 2034.

Republic said separately that it priced a private offering of $600 million of 5.25 percent senior notes due Nov. 15, 2021.

Fitch Ratings assigned a rating of “BBB-” to the $600 million 2021 notes, citing the company’s solid waste collection and disposal, significant free cash flow potential and financial flexibility. Fitch has a “Positive” rating outlook on the company’s credit, as well.

Fitch said Republic reduced outstanding consolidated debt by over $600 million and has strong liquidity.

Even though the recession has caused a decline in Republic’s waste volume over the past year, the company has managed to boost margins with pricing and cost-cutting, Fitch said.

Shares slipped 25 cents to close at $28.09.