Waste Management prices $500M debt offering

On Thursday August 25, 2011, 12:51 pm EDT

HOUSTON (AP) — Garbage collector and recycler Waste Management Inc. said Thursday that it priced a $ 500 million debt offering and plans to use some of the proceeds to repay borrowings.

Waste Management plans to use the public offering’s proceeds to pay back outstanding borrowings under its $ 2 billion revolving credit agreement. The remaining funds will be used for general corporate purposes such as additions to working capital, capital expenditures and to pay for possible buybacks, acquisitions and investments in other companies.

The five-year, 2.6 percent senior notes are guaranteed by subsidiary Waste Management Holdings Inc.

The offering is expected to close on Monday.

Last month Waste Management reported that its second-quarter profit fell as higher costs offset an increase in revenue.

Shares of Waste Management, based in Houston, fell 22 cents to $ 32.89 in afternoon trading.

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