Waste Management Enters Material Definitive Agreement

TL;DR

WM just signed a big deal, expect financial moves.

AI Summary

Waste Management, Inc. entered into a material definitive agreement on May 8, 2024, related to a direct financial obligation. The company, previously known as USA Waste Services Inc., is incorporated in Delaware and headquartered in Houston, Texas.

Why It Matters

This filing indicates a significant financial commitment or obligation for Waste Management, Inc., which could impact its financial structure and future operations.

Risk Assessment

Risk Level: medium — Material definitive agreements can introduce new financial obligations or strategic shifts that carry inherent risks.

Key Players & Entities

• Waste Management, Inc. (company) — Registrant
• USA Waste Services Inc. (company) — Former company name
• May 8, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $0.01 — nge on which registered Common Stock, $0.01 par value WM New York Stock Exchang
• $3.5 billion — ommitment under the Credit Agreement is $3.5 billion (plus a $1 billion accordion feature) a
• $1 billion — redit Agreement is $3.5 billion (plus a $1 billion accordion feature) and the maturity dat
• $375 m — ars up to the U.S. dollar equivalent of $375 million, with such borrowings to be repai
• $100 million — s. The Credit Agreement also contains a $100 million swing line sub-facility. Waste Manageme
• $200 million — ng aggregate consideration in excess of $200 million occurs during the fiscal quarter, the C
• $872 million — borrowings under the Credit Agreement; $872 million in commercial paper borrowings, which a
• $180 million — supported by the Credit Agreement; and $180 million in letters of credit issued under the C
• $2.4 billion — ilable credit capacity of approximately $2.4 billion. Several of the banks that are party t
• $3.5 Billion — Exhibit Number Description 10.1 $3.5 Billion Seventh Amended and Restated Revolving

Filing Documents

• tm2412128d2_8k.htm (8-K) — 38KB
• tm2412128d2_ex10-1.htm (EX-10.1) — 1183KB
• tm2412128d2_ex10-1sp4img001.jpg (GRAPHIC) — 8KB
• tm2412128d2_ex10-1img001.jpg (GRAPHIC) — 302KB
• tm2412128d2_ex10-1img002.jpg (GRAPHIC) — 484KB
• tm2412128d2_ex10-1img003.jpg (GRAPHIC) — 465KB
• tm2412128d2_ex10-1img004.jpg (GRAPHIC) — 437KB
• tm2412128d2_ex10-1img005.jpg (GRAPHIC) — 169KB
• tm2412128d2_ex10-1sp4img002.jpg (GRAPHIC) — 3KB
• 0001104659-24-059949.txt ( ) — 4182KB
• wm-20240508.xsd (EX-101.SCH) — 3KB
• wm-20240508_lab.xml (EX-101.LAB) — 33KB
• wm-20240508_pre.xml (EX-101.PRE) — 22KB
• tm2412128d2_8k_htm.xml (XML) — 4KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement On May 8, 2024, Waste Management, Inc. (the "Company") amended and restated its revolving credit agreement with a syndicate of banks signatory thereto and Bank of America, N.A., as administrative agent (the "Agent") (the "Credit Agreement") to extend the term and maintain available revolving credit to serve U.S. and Canadian needs of the Company and its subsidiaries. The total commitment under the Credit Agreement is $3.5 billion (plus a $1 billion accordion feature) and the maturity date is May 8, 2029, with the option to request up to two one-year extensions. Waste Management of Canada Corporation and WM Quebec Inc., each a wholly-owned subsidiary of the Company, are co-borrowers under the Credit Agreement, and the Credit Agreement permits borrowing in Canadian dollars up to the U.S. dollar equivalent of $375 million, with such borrowings to be repaid in Canadian dollars. The Credit Agreement also contains a $100 million swing line sub-facility. Waste Management Holdings, Inc., a wholly-owned subsidiary of the Company, guarantees all of the obligations under the Credit Agreement. The Credit Agreement contains customary representations and warranties and affirmative and negative covenants. The Credit Agreement contains one financial covenant, which sets forth a maximum total debt to consolidated earnings before interest, taxes, depreciation and amortization ("EBITDA") ratio. This covenant provides that the ratio of the Company's total debt to its EBITDA (the "Leverage Ratio") for the preceding four fiscal quarters will not be more than 3.75 to 1, provided that if an acquisition permitted under the Credit Agreement involving aggregate consideration in excess of $200 million occurs during the fiscal quarter, the Company shall have the right to increase the Leverage Ratio to 4.25 to 1 during such fiscal quarter and for the following three fiscal quarters (the "Elevated Leverage Ratio Period"). There shall be no

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits Exhibit Index Exhibit Number Description 10.1 $3.5 Billion Seventh Amended and Restated Revolving Credit Agreement dated as of May 8, 2024 by and among Waste Management, Inc., Waste Management of Canada Corporation, WM Quebec Inc. and Waste Management Holdings, Inc., certain banks party thereto, and Bank of America, N.A., as administrative agent. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) 4

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. WASTE MANAGEMENT, INC. Date: May 10, 2024 By: /s/ Charles C. Boettcher Charles C. Boettcher Executive Vice President, Corporate Development and Chief Legal Officer

View Full Filing

View this 8-K filing on SEC EDGAR