SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): May 14, 2019

 

Waste Management, Inc.

(Exact Name of Registrant as Specified in Charter)

 

Delaware

 

1-12154

 

73-1309529

(State or Other Jurisdiction of Incorporation)

 

(Commission File Number)

 

(IRS Employer Identification
No.)

 

1001 Fannin, Houston, Texas

 

77002

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone number, including area code: (713) 512-6200

 

 

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading Symbol(s)

 

Name of each exchange on which registered

Common Stock, $0.01 par value

 

WM

 

New York Stock Exchange

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

 

 


 

Item 1.01              Entry into a Material Definitive Agreements.

 

Item 8.01              Other Events.

 

On May 14, 2019, Waste Management, Inc. (the “Company”) commenced and priced an underwritten public offering of $750,000,000 aggregate principal amount of its 2.950% Senior Notes due 2024, $750,000,000 aggregate principal amount of its 3.200% Senior Notes due 2026, $1,000,000,000 aggregate principal amount of its 3.450% Senior Notes due 2029, $500,000,000 aggregate principal amount of its 4.000% Senior Notes due 2039 and $1,000,000,000 aggregate principal amount of its 4.150% Senior Notes due 2049 (collectively, the “Notes”) under the Company’s Registration Statement on Form S-3 (No. 333-231027). The Notes, which will be fully and unconditionally guaranteed by the Company’s wholly owned subsidiary Waste Management Holdings, Inc. (“WM Holdings”), will be sold pursuant to an underwriting agreement (the “Underwriting Agreement”) entered into on May 14, 2019 among the Company and WM Holdings and Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC as representatives of the several underwriters named therein.

 

The Underwriting Agreement includes the terms and conditions for the issuance and sale of the Notes, indemnification and contribution obligations and other terms and conditions customary in agreements of this type. Certain of the underwriters and their respective affiliates have, from time to time, performed, and may in the future perform, various financial advisory, investment banking and commercial services for the Company, for which they have received or will receive customary fees and expense reimbursements.

 

Closing of the issuance and sale of the Notes is expected to occur on May 22, 2019, subject to satisfaction of customary closing conditions. The Notes will be issued under an indenture dated as of September 10, 1997, between the Company and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Indenture”). The terms of the Notes and the guarantees by WM Holdings will be set forth with respect to each series of Notes in an officers’ certificate of the Company delivered pursuant to the Indenture on the closing date.

 

Copies of the Underwriting Agreement and the Indenture and the forms of the Officers’ Certificates and the guarantee agreements by WM Holdings are being filed as Exhibits 1.1, 4.1, 4.2, 4.3, 4.4, 4.5, 4.6, 4.12, 4.13, 4.14, 4.15 and 4.16 respectively, to this Form 8-K and are incorporated herein by reference.

 

Item 9.01                                           Financial Statements and Exhibits.

 

(d)                                 Exhibits

 

Exhibit Index

 

Exhibit
Number

 

Description

 

 

 

1.1

 

Underwriting Agreement dated May 14, 2019 by and among the Company, WM Holdings and Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC as representatives of the several Underwriters named therein.

 

 

 

4.1

 

Indenture dated September 10, 1997 by and between the Company and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as Trustee, relating to senior debt securities of the Company (incorporated by reference to Exhibit 4.1 to Current Report on Form 8-K filed September 24, 1997).

 

 

 

4.2

 

Form of Officers’ Certificate delivered pursuant to Section 301 of the Indenture establishing the terms and form of the 2.950% Senior Notes due 2024.

 

 

 

4.3

 

Form of Officers’ Certificate delivered pursuant to Section 301 of the Indenture establishing the terms and form of the 3.200% Senior Notes due 2026.

 

 

 

4.4

 

Form of Officers’ Certificate delivered pursuant to Section 301 of the Indenture establishing the terms and form of the 3.450% Senior Notes due 2029.

 

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4.5

 

Form of Officers’ Certificate delivered pursuant to Section 301 of the Indenture establishing the terms and form of the 4.000% Senior Notes due 2039.

 

 

 

4.6

 

Form of Officers’ Certificate delivered pursuant to Section 301 of the Indenture establishing the terms and form of the 4.150% Senior Notes due 2049.

 

 

 

4.7

 

Form of 2.950% Senior Note due 2024 (included in Exhibit 4.2 above).

 

 

 

4.8

 

Form of 3.200% Senior Note due 2026 (included in Exhibit 4.3 above).

 

 

 

4.9

 

Form of 3.450% Senior Note due 2029 (included in Exhibit 4.4 above).

 

 

 

4.10

 

Form of 4.000% Senior Note due 2039 (included in Exhibit 4.5 above).

 

 

 

4.11

 

Form of 4.150% Senior Note due 2049 (included in Exhibit 4.6 above).

 

 

 

4.12

 

Form of Guarantee Agreement by WM Holdings in favor of the holders of Waste Management, Inc.’s 2.950% Senior Notes due 2024.

 

 

 

4.13

 

Form of Guarantee Agreement by WM Holdings in favor of the holders of Waste Management, Inc.’s 3.200% Senior Notes due 2026.

 

 

 

4.14

 

Form of Guarantee Agreement by WM Holdings in favor of the holders of Waste Management, Inc.’s 3.450% Senior Notes due 2029.

 

 

 

4.15

 

Form of Guarantee Agreement by WM Holdings in favor of the holders of Waste Management, Inc.’s 4.000% Senior Notes due 2039.

 

 

 

4.16

 

Form of Guarantee Agreement by WM Holdings in favor of the holders of Waste Management, Inc.’s 4.150% Senior Notes due 2049.

 

 

 

5.1

 

Opinion of Baker Botts L.L.P.

 

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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 20, 2019

By:

/s/ Charles C. Boettcher

 

 

Charles C. Boettcher

 

 

Senior Vice President, Corporate Development and Chief Legal Officer

 

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Exhibit 1.1

 

Execution Version

 

WASTE MANAGEMENT, INC.

 

$750,000,000 2.950% Senior Notes due 2024

$750,000,000 3.200% Senior Notes due 2026

$1,000,000,000 3.450% Senior Notes due 2029

$500,000,000 4.000% Senior Notes due 2039

$1,000,000,000 4.150% Senior Notes due 2049

 

Underwriting Agreement

 

New York, New York

May 14, 2019

 

To the Representatives named

in Schedule II hereto of the

Underwriters named in

Schedule II hereto

 

c/o Credit Suisse Securities (USA) LLC

Eleven Madison Avenue

New York, NY 10010-3629

 

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005, United States

 

c/o Goldman Sachs & Co. LLC

200 West Street

New York, New York 10282

 

c/o J.P. Morgan Securities LLC

383 Madison Avenue

New York, New York 10179

 

c/o Mizuho Securities USA LLC

320 Park Avenue — 12th Floor

New York, New York 10022

 

Ladies and Gentlemen:

 

Waste Management, Inc., a corporation organized under the laws of Delaware (the “Company”), proposes to sell to the several underwriters named in Schedule II hereto (the “Underwriters”), for whom you (the “Representatives”) are acting as representatives, $750,000,000 aggregate principal amount of 2.950% Senior Notes due 2024 (the “2024 Notes”), $750,000,000 aggregate principal amount of 3.200% Senior Notes due 2026 (the “2026 Notes”), $1,000,000,000 aggregate principal amount of 3.450% Senior Notes due 2029 (the “2029

 


 

Notes”), $500,000,000 aggregate principal amount of 4.000% Senior Notes due 2039 (the “2039 Notes”) and $1,000,000,000 aggregate principal amount of 4.150% Senior Notes due 2049 (the “2049 Notes,” and collectively with the 2024 Notes, the 2026 Notes, the 2029 Notes and the 2039 Notes, the “Notes”), to be issued under an indenture (the “Indenture”) dated as of September 10, 1997, between the Company and The Bank of New York Mellon Trust Company, N.A. (as the current successor to the initial trustee, Texas Commerce Bank National Association), as trustee (the “Trustee”), and to be guaranteed on a senior unsecured basis (the “Guarantees”) by Waste Management Holdings, Inc. (“Holdings”) pursuant to guarantees (the “Guarantee Agreements”) in favor of the holders of the Notes to be dated as of the Closing Date (as defined in Section 3 hereof).  The Notes and the Guarantees are sometimes referred to herein collectively as the “Securities.” Any reference herein to the Registration Statement, the Preliminary Prospectus or the Final Prospectus shall be deemed to refer to and include the documents incorporated by reference therein pursuant to Item 12 of Form S-3 under the Act, which were filed under the Exchange Act on or before the Effective Date of the Registration Statement or the date of the Preliminary Prospectus or the Final Prospectus, as the case may be; and any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, the Preliminary Prospectus or the Final Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act after the Effective Date of the Registration Statement or the date of the Preliminary Prospectus or the Final Prospectus, as the case may be, deemed to be incorporated therein by reference.  Certain terms used herein are defined in Section 19 hereof.

 

The Company has entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Advanced Disposal Services, Inc. (“Advanced Disposal”) and Everglades Merger Sub Inc. (“Merger Sub”), dated as of April 14, 2019, pursuant to which Merger Sub will merge with and into Advanced Disposal with Advanced Disposal continuing as the surviving corporation and a wholly owned, indirect subsidiary of the Company.

 

At or prior to the Time of Sale, the Company had prepared the following information (the “Time of Sale Information”): the Preliminary Prospectus and each “free-writing prospectus” (as defined pursuant to Rule 405 under the Act) listed on Annex A hereto.

 

1.             Representations and Warranties.  Each of the Company and Holdings represents and warrants to, and agrees with, each Underwriter as set forth below in this Section 1.

 

(a)           The Company meets the requirements for use of Form S-3 under the Act and has prepared and filed with the Commission a registration statement (File Number 333-231027) on Form S-3, including a related base prospectus, for registration under the Act of the offering and sale of the Securities. The Registration Statement is an “automatic shelf registration statement” as defined under Rule 405 of the Act that has been filed with the Commission not earlier than three years prior to the date hereof; and no notice of objection of the Commission to the use of such registration statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act has been received by the Company. No order suspending the effectiveness of the Registration Statement has been issued by the Commission and no proceeding for that purpose or pursuant to Section 8A of the Act against the Company or related to the offering has been initiated or threatened by the Commission. The Company may have filed one or more amendments

 

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thereto, each of which has previously been furnished to you.  The Company will next file with the Commission a final prospectus in accordance with Rules 415 and 424(b). The Registration Statement, at the Time of Sale, meets the requirements set forth in Rule 415(a)(1)(x).

 

(b)           At the Effective Date, the Registration Statement did, and when the Final Prospectus is first filed in accordance with Rule 424(b) and on the Closing Date (as defined herein), the Final Prospectus (and any supplement thereto) will, comply in all material respects with the applicable requirements of the Act, the Exchange Act and the Trust Indenture Act and the respective rules thereunder; on the Effective Date the Registration Statement did not, and on the Closing Date the Registration Statement will not, contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; on the Effective Date the Indenture did, and on the Closing Date the Indenture will, comply in all material respects with the applicable requirements of the Trust Indenture Act and the rules thereunder; and on the date of filing of the Final Prospectus pursuant to Rule 424(b) and on the Closing Date, the Registration Statement and the Final Prospectus (together with any supplement thereto) will not include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made with respect to the Final Prospectus, not misleading; provided, however, that the Company makes no representations or warranties as to (i) that part of the Registration Statement which shall constitute the Statement of Eligibility and Qualification (Form T-1) under the Trust Indenture Act of the Trustee or (ii) the information contained in or omitted from the Registration Statement or the Final Prospectus (or any supplement thereto) in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of any Underwriter through the Representatives specifically for inclusion in the Registration Statement or the Final Prospectus (or any supplement thereto).

 

(c)           The Time of Sale Information at the Time of Sale did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representation and warranty with respect to any statements or omissions made in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use in such Time of Sale Information. No statement of material fact included in the Final Prospectus has been omitted from the Time of Sale Information and no statement of material fact included in the Time of Sale Information that is required to be included in the Final Prospectus has been omitted therefrom.

 

(d)           The Company (including its agents and representatives, other than the Underwriters in their capacity as such) has not prepared, made, used, authorized, approved or referred to and will not prepare, make, use, authorize, approve or refer to any “written communication” (as defined in Rule 405 under the Act) that constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a communication referred to in

 

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clauses (i), (ii) and (iii) below) an “Issuer Free Writing Prospectus”) other than (i) any document not constituting a prospectus pursuant to Section 2(a)(10)(a) of the Act or Rule 134 under the Act, (ii) the Preliminary Prospectus, (iii) the Final Prospectus, (iv) the documents listed on Annex A hereto and (v) any electronic road show or other written communications, in each case approved in writing in advance by the Representatives. Each such Issuer Free Writing Prospectus complied in all material respects with the Act, has been or will be (within the time period specified in Rule 433) filed in accordance with the Act (to the extent required thereby) and, when taken together with the Preliminary Prospectus filed prior to the first use of such Issuer Free Writing Prospectus, did not, and at the Closing Date will not, contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, that the Company makes no representation and warranty with respect to any statements or omissions made in each such Issuer Free Writing Prospectus in reliance upon and in conformity with information relating to any Underwriter furnished to the Company in writing by such Underwriter through the Representatives expressly for use in any Issuer Free Writing Prospectus.

 

(e)           The documents incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus, when they were filed with the Commission, conformed in all material respects to the requirements of the Exchange Act and none of such documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and any further documents so filed and incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus, when such documents become effective or are filed with the Commission, as the case may be, will conform in all material respects to the requirements of the Act or the Exchange Act, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading.

 

(f)            The Indenture has been duly authorized, executed and delivered by the Company and, assuming it was duly executed and delivered by the Trustee, is a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws now or hereafter in effect relating to or affecting rights and remedies of creditors, and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity), and the Indenture has been duly qualified under the Trust Indenture Act and conforms to the description thereof in the Registration Statement, the Time of Sale Information and the Final Prospectus.

 

(g)           The Notes have been duly authorized and, when executed by the Company and authenticated by the Trustee in accordance with the Indenture and delivered to you against payment therefor in accordance with the terms hereof, will have been validly issued and delivered, and will constitute valid and binding obligations of the Company

 

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entitled to the benefits of the Indenture and enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws now or hereafter in effect relating to or affecting rights and remedies of creditors, and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity), and the Notes conform to the description thereof in the Registration Statement, the Time of Sale Information and the Final Prospectus.

 

(h)           The Guarantee Agreements have been duly authorized and, when executed and delivered by Holdings against payment for the Notes in accordance with the terms thereof, will have been validly executed and delivered, and will constitute valid and binding agreements of Holdings, enforceable against Holdings in accordance with their respective terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws now or hereafter in effect relating to or affecting rights and remedies of creditors, and to general principles of equity (regardless of whether enforcement is sought in a proceeding at law or in equity), and the Guarantees conform to the description thereof in the Registration Statement, the Time of Sale Information and the Final Prospectus.

 

(i)            The Company is a corporation duly organized and validly existing in good standing under the laws of the State of Delaware with full corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the Time of Sale Information and the Final Prospectus, and is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where the failure so to register or qualify does not have a material adverse effect on the condition (financial or other), prospects, earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course of business (a “Material Adverse Effect”).

 

(j)            Holdings is a corporation duly organized and validly existing in good standing under the laws of the State of Delaware with full corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the Time of Sale Information and the Final Prospectus, and is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where the failure so to register or qualify does not have a Material Adverse Effect.

 

(k)           Each of the Company’s “significant subsidiaries” (as such term is defined in Regulation S-X under the Exchange Act) (the “Subsidiaries”) is included in the list of subsidiaries on Exhibit 21.1 of the Annual Report on Form 10-K for the year ended December 31, 2018, and each of the Subsidiaries has been duly organized, is validly existing and is in good standing in the jurisdiction of its incorporation, with full corporate power and authority to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the Time of Sale Information and the Final

 

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Prospectus; and each of the Subsidiaries is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the nature of its properties or the conduct of its business requires such registration or qualification, except where the failure so to register or qualify does not, singly or in the aggregate, have a Material Adverse Effect.

 

(l)            All of the issued and outstanding shares of capital stock of each of the Subsidiaries have been duly authorized and validly issued and are owned, directly or indirectly, by the Company.  All such shares are fully paid and nonassessable, and, except as disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, are owned by the Company, directly or indirectly, free and clear of any security interest, mortgage, pledge, claim, lien, encumbrance or adverse interest of any nature (each, a “Lien”).  Except as disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, there are no outstanding subscriptions, rights, warrants, options, calls, convertible or exchangeable securities, commitments of sale, or Liens related to or entitling any person to purchase or otherwise to acquire any shares of the capital stock of, or other ownership interests in, any Subsidiary.

 

(m)          This Agreement has been duly and validly authorized, executed and delivered by the Company and Holdings.

 

(n)           Except as disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, there is no action, suit or proceeding before or by any court or governmental agency or body or any arbitrator pending against the Company or any of its subsidiaries that is required to be disclosed in the Registration Statement, the Time of Sale Information or the Final Prospectus, or which could reasonably be expected to have a Material Adverse Effect, or materially and adversely affect the performance of the Company’s obligations pursuant to this Agreement and, to the best of the Company’s knowledge, no such proceedings are contemplated or threatened.  No action has been taken with respect to the Company or any subsidiary, and no statute, rule or regulation or order has been enacted, adopted or issued by any governmental agency and no injunction, restraining order or other order of any court of competent jurisdiction has been issued with respect to the Company or any subsidiary that prevents the issuance of the Securities or suspends the effectiveness of the Registration Statement, prevents or suspends the use of the Final Prospectus or prevents or suspends the sale of the Securities in any of the jurisdictions that you may have specified pursuant to Section 5(h) hereof; and every request of the Commission, or any securities authority or agency of any jurisdiction, for additional information to be included in the Registration Statement or the Final Prospectus or otherwise has been complied with in all material respects.

 

(o)           Except as disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus (or any amendment or supplement thereto), subsequent to the respective dates as of which such information is given in the Registration Statement, the Time of Sale Information and the Final Prospectus (or any amendment or supplement thereto), neither the Company nor any of its subsidiaries has incurred any liability or obligation, direct or contingent, that is material to the Company and its subsidiaries taken as a whole, or entered into any transaction, not in the ordinary

 

6


 

course of business, that is material to the Company and its subsidiaries taken as a whole, and there has not been any material adverse change, or any development involving or which may reasonably be expected to involve, a prospective material adverse change, in the condition (financial or other), prospects, earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course of business.

 

(p)           Except as otherwise set forth in the Registration Statement, the Time of Sale Information and the Final Prospectus or such as would not have a Material Adverse Effect, each of the Company and its subsidiaries has good and marketable title to all property (real and personal) described in the Registration Statement, the Time of Sale Information and the Final Prospectus as being owned by it, free and clear of all Liens, except Liens for taxes not yet due and payable and Liens described in the Registration Statement, the Time of Sale Information and the Final Prospectus or in a document filed as an exhibit to the Registration Statement.  All the property described in the Registration Statement, the Time of Sale Information and the Final Prospectus as being held under lease by each of the Company and its subsidiaries is held by it under valid, subsisting and enforceable leases, except as would not have a Material Adverse Effect.

 

(q)           Neither the Company nor any Subsidiary is in violation or default of (i) any provision of its charter or bylaws, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which it is a party or bound or to which its property is subject, or (iii) any statute, law, rule, regulation, judgment, order or decree of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or such Subsidiary or any of its properties, as applicable, except in the case of clauses (ii) and (iii), where such violation or default would not have a Material Adverse Effect.

 

(r)            Neither the Company nor Holdings has distributed and, prior to the later to occur of (i) the Closing Date and (ii) completion of the distribution of the Securities, neither will distribute any offering material in connection with the offering and sale of the Securities other than the Registration Statement, the Time of Sale Information and the Final Prospectus or other materials, if any, permitted by the Act.

 

(s)            Except as would not have a Material Adverse Effect, each of the Company and its subsidiaries own or possess the right to use all patents, trademarks, trademark registrations, service marks, service mark registrations, trade names, copyrights, licenses, inventions, trade secrets and rights described in the Registration Statement, the Time of Sale Information and the Final Prospectus as being owned by them or any of them or necessary for the conduct of their respective businesses, and the Company is not aware of any claim to the contrary or any challenge by any other person to the rights of the Company and its subsidiaries with respect to the foregoing.

 

(t)            Neither the Company nor Holdings is and, after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described

 

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in the Registration Statement, the Time of Sale Information and the Final Prospectus, neither will be an “investment company” as defined in the 1940 Act.

 

(u)           No consent, approval, authorization, filing with or order of any court or governmental agency or body is required in connection with the transactions contemplated herein, except such as have been obtained under the Act and the Trust Indenture Act and such as may be required under the blue sky laws of any jurisdiction in connection with the purchase and distribution of the Securities by the Underwriters in the manner contemplated herein and in the Registration Statement, the Time of Sale Information and the Final Prospectus.

 

(v)           Neither the issue and sale of the Securities nor the consummation of any other of the transactions herein contemplated nor the fulfillment of the terms hereof will conflict with, result in a breach or violation of or imposition of any lien, charge or encumbrance upon any property or assets of the Company or any of its subsidiaries pursuant to, (i) the charter or bylaws of the Company or any of its subsidiaries, (ii) the terms of any indenture, contract, lease, mortgage, deed of trust, note agreement, loan agreement or other agreement, obligation, condition, covenant or instrument to which the Company or any of its subsidiaries is a party or bound or to which its or their property is subject, except as would not have a Material Adverse Effect, or (iii) any statute, law, rule, regulation, judgment, order or decree applicable to the Company or any of its subsidiaries of any court, regulatory body, administrative agency, governmental body, arbitrator or other authority having jurisdiction over the Company or any of its subsidiaries or any of its or their properties.

 

(w)          The consolidated historical financial statements of the Company and its consolidated subsidiaries included or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus present fairly in all material respects the financial condition, results of operations and cash flows of the Company as of the dates and for the periods indicated, comply as to form with the applicable accounting requirements of the Act and have been prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis throughout the periods involved (except as otherwise noted therein).

 

(x)           Ernst & Young LLP, who have audited certain financial statements of the Company and its consolidated subsidiaries and delivered their report with respect to the audited consolidated financial statements included in the Registration Statement, the Time of Sale Information and the Final Prospectus, are an independent registered public accounting firm with respect to the Company within the applicable rules and regulations adopted by the Commission and the Public Accounting Oversight Board (United States) and as required by the Act.

 

(y)           Each of the Company and Holdings has filed all foreign, federal, state and local tax returns that are required to be filed or has requested extensions thereof (except in any case in which the failure so to file would not have a Material Adverse Effect, and except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement

 

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thereto)) and has paid all taxes required to be paid by it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such assessment, fine or penalty that is currently being contested in good faith or as would not have a Material Adverse Effect, and except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(z)           No labor problem or dispute with the employees of the Company or any of its subsidiaries exists or is threatened or imminent, nor is the Company aware of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries’ principal suppliers, contractors or customers, that would have a Material Adverse Effect, except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(aa)         Except as would not have a Material Adverse Effect, (i) the Company and each of its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which they are engaged; (ii) all policies of insurance insuring the Company or any of its Subsidiaries or their respective businesses, assets, employees, officers and directors are in full force and effect; (iii) the Company and its Subsidiaries are in compliance with the terms of such policies and instruments; (iv) there are no claims by the Company or any of its Subsidiaries under any such policy or instrument as to which any insurance company is denying liability or defending under a reservation of rights clause; and (v) neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for, except in each case as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).  Neither the Company nor any such Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect, except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(bb)         No Subsidiary is currently prohibited, directly or indirectly, from paying any dividends to the Company, from making any other distribution on such Subsidiary’s capital stock, from repaying to the Company any loans or advances to such Subsidiary from the Company or from transferring any of such Subsidiary’s property or assets to the Company or any other Subsidiary of the Company, except as described or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(cc)         Except as would not have a Material Adverse Effect, the Company and its subsidiaries possess and are in compliance with all licenses, certificates, permits and other authorizations issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, and neither the Company nor

 

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any such subsidiary has received any notice of proceedings relating to the revocation or modification of any such license, certificate, authorization or permit, which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect, except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(dd)         The Company and each of its subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles in the United States and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

 

(ee)         Neither the Company nor Holdings has taken, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in stabilization or manipulation of the price of any security of the Company or Holdings to facilitate the sale or resale of the Securities.

 

(ff)          The Company and its subsidiaries (i) are in compliance with any and all applicable foreign, federal, state and local laws, regulations and requirements relating to pollution, the protection of natural resources, human health and safety, the environment or hazardous or toxic substances or wastes, solid wastes, petroleum hydrocarbons or products, pollutants or contaminants (“Environmental Laws”); (ii) have received and are in compliance with all permits, licenses, certificates and other authorizations or approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) have not received notice of any actual or potential cost or liability for the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, solid wastes, petroleum hydrocarbons or products, pollutants or contaminants, except where such non-compliance with Environmental Laws, failure to receive required permits, licenses or other approvals, or cost or liability would not, individually or in the aggregate, have a Material Adverse Effect, except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto). The environmental reserves described or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus reflect in accordance with generally accepted accounting principles in the United States the known liabilities and obligations of the Company and its subsidiaries under Environmental Laws.

 

(gg)         In the ordinary course of its business, the Company periodically reviews the effect of Environmental Laws on the business, operations and properties of the Company and its subsidiaries, in the course of which it identifies and evaluates associated costs and liabilities (including, without limitation, any capital or operating expenditures required for clean-up, closure of properties or compliance with Environmental Laws, or

 

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any permit, license, certificate or other authorization or approval, any related constraints on operating activities and any potential liabilities to third parties).  On the basis of such review, the Company has reasonably concluded that such associated costs and liabilities would not, singly or in the aggregate, have a Material Adverse Effect, except as set forth or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(hh)                          Except as would not have a Material Adverse Effect, each of the Company and its subsidiaries has fulfilled its obligations, if any, under the minimum funding standards of Section 302 of the United States Employee Retirement Income Security Act of 1974 (“ERISA”) and the regulations and published interpretations thereunder with respect to each “plan” (as defined in Section 3(3) of ERISA and such regulations and published interpretations) in which current or former employees of the Company and all members of its controlled group (within the meaning of Section 303(d)(1)(B) of ERISA) are or have been eligible to participate and each such plan is in compliance with the presently applicable provisions of ERISA and such regulations and published interpretations.  Except as would not have a Material Adverse Effect, the Company and its subsidiaries have not incurred any unpaid liability to the Pension Benefit Guaranty Corporation (other than for the payment of premiums in the ordinary course) or to any such plan under Title IV of ERISA.

 

(ii)                                  No holders of securities of the Company or Holdings have rights to the registration of such securities under the Registration Statement.

 

(jj)                                The principal executive officer and principal financial officer of the Company have made all certifications required by the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated in connection therewith (the “Sarbanes-Oxley Act”), and the statements contained in any such certification are true and correct in all material respects. There is and has been no failure on the part of the Company or, to the knowledge of the Company, on the part of any of the Company’s directors or officers, in their capacities as such, to comply with any provision of the Sarbanes-Oxley Act, including Section 402 related to loans.

 

(kk)                          The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15(e) under the Exchange Act), which (i) were designed to ensure, among other things, that material information relating to the Company, including its consolidated subsidiaries, was made known to the principal executive officer and the principal financial officer of the Company by others within those entities, particularly during the periods in which the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 were being prepared; (ii) have been evaluated for effectiveness as of the end of the periods covered by the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 pursuant to Rule 13a-15 of the Exchange Act; and (iii) are effective to ensure that the Company is able to collect, process and disclose the information required to be disclosed in reports filed with the Commission within required time periods.

 

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(ll)                                  Based on the evaluation of its disclosure controls and procedures as of the end of the periods covered by the Company’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 and other than as has been disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, the Company is not aware of (i) any significant deficiency in the design or operation of internal controls which could adversely affect its ability to record, process, summarize and report financial data or any material weaknesses in internal controls; or (ii) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls of the Company.

 

(mm)                  The Company maintains systems of “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that comply with the requirements of the Exchange Act and have been designed by, or under the supervision of, their respective principal executive and principal financial officers, or persons performing similar functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States. Except as disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, there are no material weaknesses in the Company’s internal controls.

 

(nn)                          Since March 31, 2019, there have been no significant changes in internal controls or in other factors that could significantly affect the Company’s internal controls over financial reporting.

 

(oo)                          Other than Holdings, no subsidiary of the Company has guaranteed any outstanding senior indebtedness of the Company except for de minimis guarantees made in the ordinary course of business.

 

(pp)                          The Company is not an ineligible issuer and is a well-known seasoned issuer, in each case as defined under the Act, in each case at the times specified in the Act in connection with the offering of the Securities.

 

(qq)                          None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is aware of or has taken any action, directly or indirectly, that would result in a violation by such persons or entities of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (the “FCPA”), any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions, the Bribery Act 2010 of the United Kingdom or any other applicable anti-bribery or anti-corruption law (collectively, the “Anti-Corruption Laws”), including, without limitation, making or taking an act in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or other property, gift, promise to give, or authorization of the giving of anything of value to any foreign or domestic government official or employee, foreign political party or official thereof or candidate for foreign political office, in contravention of the Anti-Corruption Laws. The Company, its subsidiaries and, to the knowledge of the

 

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Company, its affiliates have conducted their businesses in compliance with the Anti-Corruption Laws and have instituted and maintain policies and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith.

 

(rr)                                None of the Company, any of its subsidiaries or, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State and including, without limitation, the designation as a “specially designated national” or “blocked person”), the United Nations Security Council, the European Union, Her Majesty’s Treasury, or other relevant sanctions authority (collectively, “Sanctions”), nor is the Company or any of its subsidiaries located, organized or resident in a country or territory that is the subject or target of Sanctions, including, without limitation, Crimea, Cuba, Iran, North Korea and Syria (each, a “Sanctioned Country”); and the Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (i) to fund any activities of or business with any person that, at the time of such funding, is the subject or target of Sanctions, or (ii) to fund any activities of or business in any Sanctioned Country.

 

(ss)                              The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(tt)                                (i)                                     The Merger Agreement has been duly authorized, executed and delivered by the Company and Merger Sub.

 

(ii)                                  To the knowledge of the Company, the representations and warranties (as qualified therein and taking into account the matters described in the disclosure schedules thereto) of Advanced Disposal in the Merger Agreement are true and correct as of the date of the Merger Agreement, except to the extent such representations and warranties are made as of another date, in which case such representations and warranties were true and correct as of that date. Nothing has come to the Company’s attention that has caused it to believe that the transactions contemplated by the Merger Agreement will not be consummated substantially in accordance with the terms and conditions of the Merger Agreement.

 

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(uu)                          Except as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, the Company and its subsidiaries’ information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (collectively, “IT Systems”) are reasonably believed by the Company to be adequate for, and operate and perform as required in connection with, the operation of the business of the Company and its subsidiaries as currently conducted.  The Company and its subsidiaries have implemented, and continue to monitor and develop, commercially reasonable controls, policies, procedures, and safeguards to prevent, detect, and address the risk of unauthorized use, misuse, intrusion and similar events involving the IT Systems. To the knowledge of the Company, there have been no breaches or unauthorized uses of or accesses to the IT Systems, and no such incidents are under internal investigation, that individually or in the aggregate, have, or would reasonably be expected to result in, a Material Adverse Effect.

 

Any certificate signed by any officer of the Company or Holdings and delivered to the Representatives or counsel for the Underwriters in connection with the offering of the Securities shall be deemed a representation and warranty by the Company or Holdings, as the case may be, as to matters covered thereby, to each Underwriter.

 

2.                                      Purchase and Sale.

 

Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company agrees to sell to each Underwriter, and each Underwriter agrees, severally and not jointly, to purchase from the Company, at a purchase price of (i) 99.644% of the principal amount of the 2024 Notes, (ii) 99.573% of the principal amount of the 2026 Notes, (iii) 99.154% of the principal amount of the 2029 Notes, (iv) 99.146% of the principal amount of the 2039 Notes and (v) 98.997% of the principal amount of the 2049 Notes, plus, in each of the cases mentioned in the preceding clauses (i) through (v), accrued interest, if any, from May 22, 2019 to the Closing Date, the principal amount of the Notes set forth opposite such Underwriter’s name in Schedule II hereto.

 

The Company acknowledges and agrees that the Underwriters are acting solely in the capacity of an arm’s-length contractual counterparty to the Company with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the offering) and not as a financial advisor or a fiduciary to, or an agent of, the Company or any other person. Additionally, in connection with the offering of Securities hereby, neither the Representatives nor any other Underwriter is advising the Company or any other person as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction.  The Company shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Underwriters shall have no responsibility or liability to the Company with respect thereto. Any review by the Underwriters of the Company, the transactions contemplated hereby or other matters relating to such transactions will be performed solely for the benefit of the Underwriters and shall not be on behalf of the Company.

 

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3.                                      Delivery and Payment.  Delivery of and payment for the Securities shall be made on the date and at the time specified in Schedule I hereto or at such time on such later date not more than three Business Days after the foregoing date as the Representatives shall designate, which date and time may be postponed by agreement between the Representatives and the Company or as provided in Section 10 hereof (such date and time of delivery and payment for the Securities being herein called the “Closing Date”).  Delivery of the Securities shall be made to the Representatives for the respective accounts of the several Underwriters against payment by the several Underwriters through the Representatives of the purchase price thereof to or upon the order of the Company by wire transfer payable in same-day funds to an account specified by the Company.  Delivery of the Securities shall be made through the facilities of The Depository Trust Company unless the Representatives shall otherwise instruct.

 

4.                                      Offering by Underwriters.  It is understood that the several Underwriters propose to offer the Securities for sale to the public as set forth in the Registration Statement, the Time of Sale Information and the Final Prospectus.

 

5.                                      Agreements.  The Company agrees with the several Underwriters that:

 

(a)                                 The Company will file the Final Prospectus with the Commission within the time periods specified by Rule 424(b) and Rule 430A, 430B or 430C under the Act; will file any Issuer Free Writing Prospectus (including the term sheet in the form of Schedule I hereto) to the extent required by Rule 433 under the Act; and will file promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the Final Prospectus and for so long as the delivery of a prospectus is required in connection with the offering or sale of the Securities; and the Company will furnish copies of the Final Prospectus and each Issuer Free Writing Prospectus (to the extent not previously delivered) to the Underwriters in New York City prior to 10:00 A.M., New York City time, on the business day next succeeding the date of this Agreement in such quantities as the Representatives may reasonably request. The Company shall pay the registration fees for this offering within the time period required by Rule 456(b)(1)(i) under the Act (without giving effect to the proviso therein) and in any event prior to the Closing Date.

 

(b)                                 Before making, preparing, using, authorizing, approving, referring to or filing any Issuer Free Writing Prospectus, and before filing any amendment or supplement to the Registration Statement or the Final Prospectus, the Company will furnish to the Representatives and counsel for the Underwriters a copy of the proposed Issuer Free Writing Prospectus, amendment or supplement for review and will not make, prepare, use, authorize, approve, refer to or file any such Issuer Free Writing Prospectus or file any such proposed amendment or supplement to which the Representatives reasonably object. Subject to the foregoing sentence, if the filing of the Final Prospectus is otherwise required under Rule 424(b), the Company will cause the Final Prospectus, properly completed, and any supplement thereto to be filed with the Commission pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed and will provide evidence satisfactory to the Representatives of such timely filing.

 

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(c)                                  The Company will promptly advise the Representatives (i) when the Final Prospectus, and any supplement thereto, or any amendment to the Final Prospectus or any Issuer Free Writing Prospectus shall have been filed with the Commission pursuant to Rule 424(b) or when any Rule 462(b) Registration Statement shall have been filed with the Commission; (ii) when, prior to termination of the offering of the Securities, any amendment to the Registration Statement shall have been filed or become effective; (iii) of any request by the Commission or its staff for any amendment to the Registration Statement, or any Rule 462(b) Registration Statement, or for any supplement to the Final Prospectus or for any additional information; (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or preventing or suspending the use of any Preliminary Prospectus or the Final Prospectus or the institution or threatening of any proceeding for that purpose or pursuant to Section 8A of the Act; (v) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Securities for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose; and (vi) of the receipt by the Company of any notice of objection of the Commission to the use of the Registration Statement or any post-effective amendment thereto pursuant to Rule 401(g)(2) under the Act.  The Company will use its best efforts to prevent the issuance of any such stop order or the suspension of any such qualification and, if issued, to obtain as soon as possible the withdrawal thereof.

 

(d)                                 If, during the Prospectus Delivery Period, (i) any event occurs as a result of which the Final Prospectus as then supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading, or (ii) it shall be necessary to amend the Registration Statement or supplement the Final Prospectus to comply with the Act or the Exchange Act or the respective rules thereunder, the Company promptly will (1) notify the Representatives of such event, (2) prepare and file with the Commission, subject to the second sentence of paragraph (b) of this Section 5, an amendment or supplement which will correct such statement or omission or effect such compliance, and (3) supply any supplemented Final Prospectus to the Underwriters in such quantities as they may reasonably request.

 

(e)                                  If at any time prior to the Closing Date (i) any event shall occur or condition shall exist as a result of which the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement the Time of Sale Information to comply with law, the Company will immediately notify the Underwriters thereof and forthwith prepare and, subject to paragraph (b) of this Section 5, file with the Commission (to the extent required) and furnish to the Underwriters and to such dealers as the Representatives may designate, such amendments or supplements to the Time of Sale Information as may be necessary so that the statements in the Time of Sale Information as so amended or supplemented will not, in the light of the circumstances under which they were made, be misleading or so that the Time of Sale Information will comply with law.

 

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(f)                                   As soon as practicable, the Company will make generally available to its security holders and to the Representatives an earnings statement or statements of the Company and its Subsidiaries which will satisfy the provisions of Section 11(a) of the Act and Rule 158 under the Act.

 

(g)                                  The Company will furnish to the Representatives and counsel for the Underwriters, without charge, signed or conformed copies of the Registration Statement (including exhibits thereto and documents incorporated by reference therein) and to each other Underwriter a copy of the Registration Statement (without exhibits thereto) and, during the Prospectus Delivery Period, as many copies of the Final Prospectus, any amendment or supplement thereto and documents incorporated by reference therein, and each Issuer Free Writing Prospectus as the Representatives may reasonably request.  The Company will pay the expenses of printing or other production of all documents relating to the offering.

 

(h)                                 The Company will arrange, if necessary, for the qualification of the Securities for sale under the laws of such jurisdictions as the Representatives may designate, will maintain such qualifications in effect so long as required for the distribution of the Securities and will pay any fee of the Financial Industry Regulatory Authority, in connection with its review of the offering; provided, however, that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take any action that would subject it to tax or service of process in suits, other than those arising out of the offering or sale of the Securities, in any jurisdiction where it is not now so subject.

 

(i)                                     The Company will not, without the prior written consent of the Representatives, offer, sell, contract to sell, pledge, or otherwise dispose of, (or enter into any transaction which is designed to, or might reasonably be expected to, result in the disposition (whether by actual disposition or effective economic disposition due to cash settlement or otherwise) by the Company or any affiliate of the Company or any person in privity with the Company or any affiliate of the Company) directly or indirectly, including the filing (or participation in the filing) of a registration statement with the Commission in respect of, or establish or increase a put equivalent position or liquidate or decrease a call equivalent position within the meaning of Section 16 of the Exchange Act, any debt securities (excluding commercial paper or bank borrowings) issued or guaranteed by the Company (other than the Securities) or publicly announce an intention to effect any such transaction, until the Closing Date.

 

(j)                                    Neither the Company nor Holdings will take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of the Securities.

 

(k)                                 The Company will, pursuant to reasonable procedures developed in good faith, retain copies of each Issuer Free Writing Prospectus that is not filed with the Commission in accordance with Rule 433 under the Act.

 

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6.                                      Certain Agreements of the Underwriters.  Each Underwriter hereby represents and agrees that:

 

(a)                                 It has not and will not use, authorize use of, refer to, or participate in the planning for use of, any “free writing prospectus,” as defined in Rule 405 under the Act (which term includes use of any written information furnished to the Commission by the Company and not incorporated by reference into the Registration Statement and any press release issued by the Company) other than (i) a free writing prospectus that, solely as a result of use by such Underwriter, would not trigger an obligation to file such free writing prospectus with the Commission pursuant to Rule 433 under the Act, (ii) any Issuer Free Writing Prospectus listed on Annex A or prepared pursuant to Section 1(d) or Section 5(b) above (including any electronic road show), or (iii) any free writing prospectus prepared by such Underwriter and approved by the Company in advance in writing.  Notwithstanding the foregoing, the Underwriters may use a term sheet substantially in the form of Schedule I hereto without the consent of the Company.

 

(b)                                 It is not subject to any pending proceeding under Section 8A of the Act with respect to the offering of the Securities (and will promptly notify the Company if any such proceeding against it is initiated during the Prospectus Delivery Period).

 

7.                                      Conditions to the Obligations of the Underwriters.  The obligations of the Underwriters to purchase the Securities shall be subject to the accuracy of the representations and warranties on the part of the Company and Holdings contained herein as of the Time of Sale and the Closing Date, to the accuracy of the statements of the Company and Holdings made in any certificates pursuant to the provisions hereof, to the performance by the Company and Holdings of their obligations hereunder and to the following additional conditions:

 

(a)                                 If the filing of the Final Prospectus, or any supplement thereto, is required pursuant to Rule 424(b), the Final Prospectus, and any such supplement, will be filed in the manner and within the time period required by Rule 424(b); no stop order suspending the effectiveness of the Registration Statement shall have been issued and no proceedings for that purpose, pursuant to Rule 401(g)(2) and Section 8A under the Act or otherwise, shall have been instituted or threatened; each Issuer Free Writing Prospectus shall have been timely filed with the Commission under the Act to the extent required by Rule 433 thereunder; and all requests by the Commission for additional information shall have been complied with to the reasonable satisfaction of the Representatives.

 

(b)                                 The Company shall have requested and caused Baker Botts L.L.P., counsel for the Company and Holdings, to have furnished to the Representatives their opinion, dated the Closing Date and addressed to the Representatives, to the effect that:

 

(i)                                     each of the Company and Holdings is a corporation duly incorporated and validly existing in good standing under the laws of the State of Delaware, with corporate power and authority under such laws to own, lease and operate its properties and to conduct its business as described in the Registration Statement, the Time of Sale Information and the Final Prospectus and to execute and deliver and perform its obligations under this Agreement;

 

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(ii)                                  this Agreement has been duly authorized, executed and delivered by the Company and Holdings;

 

(iii)                               the Indenture has been duly authorized, executed and delivered by the Company and (assuming the due authorization, execution and delivery thereof by the Trustee) constitutes a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except to the extent the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws relating to or affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law), which principles may include implied duties of good faith and fair dealing;

 

(iv)                              each of the global certificates representing the Notes is in a form authorized by the Indenture, the Notes have been duly authorized by the Company and, assuming the global certificates representing the Notes have been authenticated and delivered by the Trustee in the manner provided for in the Indenture and delivered against payment of the consideration therefor as specified in this Agreement, the Notes constitute valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except to the extent the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws relating to or affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law), which principles may include implied duties of good faith and fair dealing. Each registered holder thereof is entitled to the benefits of the Indenture;

 

(v)                                 the Guarantee Agreements have been duly authorized, executed and delivered by Holdings and, assuming the global certificates representing the Notes have been authenticated and delivered by the Trustee in the manner provided for in the Indenture and delivered against payment of the consideration therefor as specified in this Agreement, the Guarantee Agreements constitute valid and binding agreements of Holdings, enforceable against Holdings in accordance with their respective terms, except to the extent the enforceability thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium or similar laws relating to or affecting creditors’ rights and remedies generally and by general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law), which principles may include implied duties of good faith and fair dealing, and except for provisions purporting to waive rights to notice, legal defenses, statutes of limitation or other benefits that cannot be waived under applicable law;

 

(vi)                              the Indenture has been duly qualified under the Trust Indenture Act;

 

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(vii)                           the Securities and the Indenture conform as to legal matters in all material respects to the descriptions thereof contained in the Registration Statement, the Time of Sale Information and the Final Prospectus;

 

(viii)                        the Registration Statement has become effective under the Act; any required filing of the Final Prospectus pursuant to Rule 424(b) has been made in the manner and within the time period required by Rule 424(b); and, to the best of such counsel’s knowledge, no stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for that purpose have been instituted or are pending or threatened under the Act;

 

(ix)                              no authorization, approval, consent or license of any regulatory body or authority (other than under the Act, the Trust Indenture Act and the securities or Blue Sky laws of the various states) and no approval of the stockholders of the Company or Holdings is required for the valid authorization, issuance, sale and delivery of the Securities by the Company or Holdings, or for the performance of the Indenture;

 

(x)                                 the execution and delivery of this Agreement, the consummation of the transactions contemplated by this Agreement and compliance with the terms of this Agreement and the Indenture do not and will not conflict with or result in a breach of any of the terms or provisions of, or constitute a default under, the charter or by-laws of the Company or Holdings, or the express terms of any agreement set forth on Annex B hereto (the “Reviewed Agreements”), or any existing applicable laws, rule or regulation (excluding any state securities or state or federal anti-fraud law, rule or regulation);

 

(xi)                              the statements set forth in the Preliminary Prospectus and the Final Prospectus under the heading “Certain U.S. Federal Tax Considerations for Non-U.S. Holders,” insofar as such statements purport to constitute a summary of matters of United States federal income tax law and regulations or legal conclusions with respect thereto, accurately summarize the matters described therein in all material respects, subject to the assumptions and qualifications set forth therein; and

 

(xii)                           neither the Company nor Holdings is an “investment company” or an entity “controlled” by an “investment company,” as such terms are defined in the 1940 Act.

 

In addition, such counsel shall state that they have reviewed the Registration Statement, the Time of Sale Information and the Final Prospectus and have participated in conferences with officers and other representatives of the Company, with representatives of the Company’s independent registered public accounting firm and with the Underwriters and counsel to the Underwriters, at which the contents of the Registration Statement, the Time of Sale Information, the Final Prospectus and related matters were discussed, and although the purpose of such counsel’s professional engagement was not to establish or confirm factual matters set forth in the Registration

 

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Statement, the Time of Sale Information or the Final Prospectus, and such counsel has not undertaken to verify independently any of the factual matters in such documents, and although many of the determinations required to be made in the preparation of the Registration Statement, the Time of Sale Information and the Final Prospectus involve matters of a non-legal nature and, accordingly, such counsel is not passing upon, and does not assume any responsibility for, the accuracy, completeness or fairness of the statements contained or included in the Registration Statement, the Time of Sale Information and the Final Prospectus (except to the extent stated in paragraphs (vii) and (xi) above), subject to the foregoing and on the basis of the information such counsel gained in the course of performing the services referred to above, such counsel shall advise that (a) the Registration Statement, as of the latest Effective Date, the Time of Sale Information, as of the Time of Sale, and the Final Prospectus, as of its date and the date hereof, appear on their face to be appropriately responsive in all material respects to the requirements of the Act and the rules and regulations of the Commission thereunder; and (b) nothing has come to such counsel’s attention that caused such counsel to believe that (1) the Registration Statement, as of the latest Effective Date, contained an untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein not misleading; (2) the Time of Sale Information, as of the Time of Sale, included an untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; or (3) the Final Prospectus, as of its date or as of the Closing Date, included or includes an untrue statement of a material fact or omitted or omits to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that in each case such counsel need not express any belief with respect to (x) the financial statements or other financial or accounting information contained or included or incorporated by reference therein or omitted therefrom, (y) representations and warranties and other statements of fact contained in the exhibits to the Registration Statement or to documents incorporated by reference therein or (z) that part of the Registration Statement that constitutes the Trustee’s Statement of Eligibility on Form T-1.

 

In rendering such opinions, such counsel may (A) state that the opinions are based on and limited to the contract law of the State of New York, the laws of the State of Texas, the General Corporation Law of Delaware and the Federal laws of the United States, and (B) rely, as to matters of fact, to the extent they deem proper, on certificates of responsible officers of the Company and public officials.  References to the Final Prospectus in this paragraph (b) include any supplements thereto at the Closing Date.

 

(c)           Courtney A. Tippy, General Counsel — Securities & Governance, Corporate Secretary of the Company, shall have furnished to the Representatives her opinion, dated the Closing Date and addressed to the Representatives, to the effect that:

 

(i)            each of the corporate Subsidiaries organized under United States law is a corporation duly incorporated and validly existing in good standing under the laws of the jurisdiction of its incorporation, has corporate power and authority to own, lease and operate its properties and to conduct its business as described in

 

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the Registration Statement, the Time of Sale Information and the Final Prospectus, except as would not have a Material Adverse Effect; except as otherwise disclosed in the Registration Statement, the Time of Sale Information and the Final Prospectus, all of the issued and outstanding capital stock of each of the Subsidiaries is validly issued, fully paid and nonassessable and, to the best of such counsel’s knowledge, all of such shares of stock owned by the Company are owned free and clear of any security interest, mortgage, pledge, lien, encumbrance, claim or equity; none of the outstanding shares of capital stock of the Subsidiaries were issued in violation of the preemptive or similar rights of any security holder thereof;

 

(ii)           the documents incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus (other than the financial statements and other financial data included therein or omitted therefrom, as to which such counsel need express no opinion, and except to the extent that any statement therein is modified or superseded in the Time of Sale Information and the Final Prospectus), as of the dates they became effective or were filed with the Commission, as the case may be, appear on their face to be appropriately responsive in all material respects to the requirements of the Exchange Act and the rules and regulations promulgated thereunder;

 

(iii)          except as set forth in the Registration Statement, the Time of Sale Information and the Final Prospectus (or incorporated by reference therein), such counsel does not know of any action, suit, proceeding, inquiry or investigation pending or threatened against the Company or any of its subsidiaries, or to which the property of the Company or any of its subsidiaries is subject, before or brought by any court or governmental agency or body, domestic or foreign, in which there is a reasonable probability of a Material Adverse Effect;

 

(iv)          such counsel does not know of any statutes or regulations or any pending or threatened legal or governmental proceedings required to be described in the Registration Statement, the Time of Sale Information and the Final Prospectus which are not described as required, nor of any material contracts or documents of a character required to be described in the Registration Statement, the Time of Sale Information or the Final Prospectus or to be filed or incorporated as exhibits to the Registration Statement which are not described and filed or incorporated as required;

 

(v)           such counsel does not know of any holders of securities of the Company or Holdings that have rights to the registration of such securities under the Registration Statement; and

 

(vi)          the execution and delivery of this Agreement, the Notes, the Guarantee Agreements and the execution and performance of the Indenture (the “Operative Agreements”), the consummation of the transactions contemplated in the Operative Agreements and compliance with the terms of the Operative Agreement do not and will not conflict with or result in a breach of any of the

 

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terms or provisions of, or constitute a default under, the charter or by-laws of the Company or any of its Subsidiaries, or, to the knowledge of such counsel, any indenture, mortgage or other agreement or instrument to which the Company or its Subsidiaries is a party or by which they or any of their property is bound, or any existing applicable laws, rule, regulation (excluding any state securities or state or federal anti-fraud law, rule or regulation), or, to the knowledge of such counsel, any judgment, order or decree of any government, governmental instrumentality or court, domestic or foreign, having jurisdiction over the Company or its Subsidiaries or any of their properties, that in any case would have a Material Adverse Effect.

 

(d)           The Representatives shall have received from Gibson, Dunn & Crutcher LLP, counsel for the Underwriters, such opinion or opinions, dated the Closing Date and addressed to the Representatives, with respect to the issuance and sale of the Securities, the Indenture, the Registration Statement, the Time of Sale Information and the Final Prospectus (together with any supplement thereto) and other related matters as the Representatives may reasonably require, and the Company shall have furnished to such counsel such documents as they request for the purpose of enabling them to pass upon such matters.

 

(e)           Each of the Company and Holdings shall have furnished to the Representatives a certificate, signed by the principal legal officer and the vice president and treasurer of the Company in the case of the Company, and signed by the vice president and treasurer of Holdings in the case of Holdings, dated the Closing Date, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Time of Sale Information and the Final Prospectus, any supplements to the Time of Sale Information and the Final Prospectus, and this Agreement and that:

 

(i)            in the case of Holdings, the representations and warranties of Holdings in this Agreement are true and correct on and as of the Closing Date with the same effect as if made on the Closing Date;

 

(ii)           in the case of the Company, the representations and warranties of the Company in this Agreement are true and correct on and as of the Closing Date with the same effect as if made on the Closing Date, and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to the Closing Date;

 

(iii)          no stop order suspending the effectiveness of the Registration Statement has been issued and no proceedings for that purpose have been instituted or, to the Company’s knowledge, threatened; and

 

(iv)          since the date of the most recent financial statements included or incorporated by reference in the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto), there has been no material adverse effect on the condition (financial or otherwise), prospects, earnings, business or properties of the Company and its Subsidiaries, taken as a

 

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whole, whether or not arising from transactions in the ordinary course of business, except as set forth or contemplated in the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(f)            The Company shall have requested and caused Ernst & Young LLP to have furnished to the Representatives, at the Time of Sale and at the Closing Date, letters (which may refer to letters previously delivered to one or more of the Representatives), dated respectively as of the Time of Sale and as of the Closing Date, in form and substance satisfactory to the Representatives, confirming that they are independent accountants within the meaning of the Act and the Exchange Act and the respective applicable rules and regulations adopted by the Commission thereunder, and stating in effect, among other things, that:

 

(i)            in their opinion the audited financial statements included or incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus and reported on by them comply as to form in all material respects with the applicable accounting requirements of the Act and the Exchange Act and the related rules and regulations adopted by the Commission;

 

(ii)           the information included or incorporated by reference in the Registration Statement, the Time of Sale Information and Final Prospectus in response to Regulation S-K, Item 301 (Selected Financial Data) is in conformity with the applicable disclosure requirements of Regulation S-K;

 

(iii)          they have performed certain other specified procedures as a result of which they determined that certain information of an accounting, financial or statistical nature (which is limited to accounting, financial or statistical information derived from the general accounting records of the Company and its consolidated subsidiaries) set forth in the Registration Statement, the Time of Sale Information and the Final Prospectus, the information included or incorporated by reference in the Company’s Annual Report on Form 10-K for the year ended December 31, 2018, and the Company’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2019 incorporated by reference in the Registration Statement, the Time of Sale Information and the Final Prospectus, and the information included in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” agrees with the accounting records of the Company and its consolidated subsidiaries, excluding any questions of legal interpretation; and

 

(iv)          they have inquired of certain officials of the Company who have responsibility for financial and accounting matters as to whether: (A) at May 9, 2019 there was any change in the capital stock, increase in long-term indebtedness or any decreases in consolidated net current assets or in total equity of the Company as compared with the amounts shown on the March 31, 2019 unaudited consolidated balance sheet incorporated by reference in the Registration Statement; or (B) for the period from April 1, 2019 to May 9, 2019

 

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there were any decreases, as compared with the corresponding period in the preceding year, in consolidated operating revenues or in the total or per-share amounts of net consolidated income attributable to the Company.

 

References to the Final Prospectus in this paragraph (f) of this Section 7 include any supplement thereto at the date of the letter. The letter delivered on the Closing Date shall use a “cut-off” date no more than three business days prior to the Closing Date.

 

(g)           Subsequent to the Time of Sale or, if earlier, the dates as of which information is given in the Registration Statement (exclusive of any amendment thereof) and the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto), there shall not have been (i) any change or decrease specified in the letter or letters referred to in paragraph (f) of this Section 7 or (ii) any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise), earnings, business or properties of the Company and its Subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth or contemplated in the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto) the effect of which, in any case referred to in clause (i) or (ii) above, is, in the sole judgment of the Representatives, so material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Securities as contemplated by the Registration Statement (exclusive of any amendment thereof) and the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

(h)           Subsequent to the Time of Sale, there shall not have been any decrease in the rating of any of the Company’s debt securities by any “nationally recognized statistical rating organization” (as defined for purposes of Rule 436(g) under the Act) or any notice given of any intended or potential decrease in any such rating or of a possible change in any such rating that does not indicate the direction of the possible change.

 

(i)            Prior to the Closing Date, the Company and Holdings shall have furnished to the Representatives such further information, certificates and documents as the Representatives may reasonably request.

 

If any of the conditions specified in this Section 7 shall not have been fulfilled in all material respects when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not be in all material respects reasonably satisfactory in form and substance to the Representatives and counsel for the Underwriters, this Agreement and all obligations of the Underwriters hereunder may be canceled at, or at any time prior to, the Closing Date by the Representatives.  Notice of such cancellation shall be given to the Company in writing or by telephone or facsimile confirmed in writing.

 

The documents required to be delivered by this Section 7 shall be delivered at the office of Baker Botts L.L.P., counsel for the Company, at One Shell Plaza, 910 Louisiana Street, Houston, Texas 77002, on the Closing Date.

 

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8.             Reimbursement of Underwriters’ Expenses.  If the sale of the Securities provided for herein is not consummated because any condition to the obligations of the Underwriters set forth in Section 7 hereof is not satisfied, because of any termination pursuant to Section 11 hereof (other than as a result of the occurrence of the circumstances in Sections 11(ii) and 11(iii)) or because of any refusal, inability or failure on the part of the Company to perform any agreement herein or comply with any provision hereof other than by reason of a default by any of the Underwriters, the Company will reimburse the Underwriters severally through the Representatives on demand for all out-of-pocket expenses (including reasonable fees and disbursements of counsel) that shall have been incurred by them in connection with the proposed purchase and sale of the Securities.

 

9.             Indemnification and Contribution.  (a) Each of the Company and Holdings, jointly and severally, agrees to indemnify and hold harmless each Underwriter, the directors, officers, employees, affiliates and agents of each Underwriter and each person who controls any Underwriter within the meaning of either the Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) (i) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement or in any amendment thereof, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading or (ii) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Final Prospectus (or any amendment or supplement thereto), any Issuer Free Writing Prospectus or the Time of Sale Information, or arise out of or are based upon any omission or alleged omission to state therein a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, and agrees to reimburse each such indemnified party, as incurred, for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that neither the Company nor Holdings will be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by or on behalf of any Underwriter through the Representatives specifically for inclusion therein. This indemnity agreement will be in addition to any liability that the Company or Holdings may otherwise have.

 

(b)           Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company and Holdings, each of their respective directors, each of their respective officers who signs the Registration Statement, and each person who controls either the Company or Holdings within the meaning of either the Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company or Holdings to each Underwriter (the “Foregoing Indemnity”), but only with reference to written information relating to such Underwriter furnished to the Company by or on behalf of such Underwriter through the Representatives specifically for inclusion in the documents referred to in the Foregoing Indemnity.  This indemnity agreement will be in addition to any liability which any Underwriter may otherwise have.  Each of the Company and Holdings acknowledges that the following statements set forth

 

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in the Time of Sale Information and the Final Prospectus constitute the only information furnished in writing by or on behalf of the several Underwriters for inclusion in the documents referred to in the Foregoing Indemnity: (i) the statements in the last paragraph of the cover page regarding delivery of the Securities and (ii) (A) the list of Underwriters and their respective participation in the sale of the Securities, (B) the sentences related to concessions and reallowances, and (C) the paragraphs related to stabilization, syndicate covering transactions and penalty bids, in each case under the heading “Underwriting.”

 

(c)           Promptly after receipt by an indemnified party under this Section 9 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 9, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a) or (b) above.  The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party and shall not, without the consent of the indemnified party, be counsel to the indemnifying party.  Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ a separate counsel (including a local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action or (ii) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party.  An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of an indemnified party.  An indemnifying party shall not be liable under this Section 9 to any indemnified party regarding any settlement or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent is consented to by such indemnifying party, which consent shall not be unreasonably withheld.

 

(d)           In the event that the indemnity provided in paragraph (a) or (b) of this Section 9 is unavailable to or insufficient to hold harmless an indemnified party for any reason,

 

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the Company, Holdings and the Underwriters severally agree to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending the same) (collectively, “Losses”) to which the Company, Holdings and one or more of the Underwriters may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company and Holdings on the one hand and by the Underwriters on the other from the offering of the Securities; provided, however, that in no case shall any Underwriter (except as may be provided in any agreement among underwriters relating to the offering of the Securities) be responsible for any amount in excess of the underwriting discount or commission applicable to the Securities purchased by such Underwriter hereunder.  If the allocation provided by the immediately preceding sentence is unavailable for any reason, the Company, Holdings and the Underwriters severally shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company and Holdings on the one hand and of the Underwriters on the other in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations.  Benefits received by the Company and Holdings shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by the Company, and benefits received by the Underwriters shall be deemed to be equal to the total underwriting discounts and commissions, in each case as set forth on the cover page of the Final Prospectus.  Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided by the Company and Holdings on the one hand or the Underwriters on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission.  The Company, Holdings and the Underwriters agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations referred to above.  Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation.  The Underwriters’ obligations in this paragraph (d) to contribute are several in proportion to their respective underwriting obligations and not joint.  For purposes of this Section 9, each person who controls an Underwriter within the meaning of either the Act or the Exchange Act and each director, officer, employee and agent of an Underwriter shall have the same rights to contribution as such Underwriter, and each person who controls the Company or Holdings within the meaning of either the Act or the Exchange Act, each officer of the Company or Holdings who shall have signed the Registration Statement and each director of the Company or Holdings shall have the same rights to contribution as the Company or Holdings, subject in each case to the applicable terms and conditions of this paragraph (d).

 

10.          Default by an Underwriter.  If any one or more Underwriters shall fail to purchase and pay for any of the Securities agreed to be purchased by such Underwriter or Underwriters hereunder and such failure to purchase shall constitute a default in the performance of its or their obligations under this Agreement, the remaining Underwriters shall be obligated severally to take up and pay for (in the respective proportions which the principal amount of Notes set forth opposite their names in Schedule II hereto bears to the aggregate principal amount of Notes set forth opposite the names of all the remaining Underwriters) the Securities which the defaulting Underwriter or Underwriters agreed but failed to purchase; provided, however, that in the event

 

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that the aggregate principal amount of Notes which the defaulting Underwriter or Underwriters agreed but failed to purchase shall exceed 10% of the aggregate principal amount of Notes set forth in Schedule II hereto, the remaining Underwriters shall have the right to purchase all, but shall not be under any obligation to purchase any, of the Securities, and if such nondefaulting Underwriters do not purchase all the Securities, this Agreement will terminate without liability to any nondefaulting Underwriter, the Company or Holdings.  In the event of a default by any Underwriter as set forth in this Section 10, the Closing Date shall be postponed for such period, not exceeding five Business Days, as the Representatives shall determine in order that the required changes in the Registration Statement, the Time of Sale Information and the Final Prospectus or in any other documents or arrangements may be effected.  Nothing contained in this Agreement shall relieve any defaulting Underwriter of its liability, if any, to the Company and any nondefaulting Underwriter for damages occasioned by its default hereunder.

 

11.          Termination.  This Agreement shall be subject to termination in the absolute discretion of the Representatives, by notice given to the Company prior to delivery of and payment for the Securities, if at any time prior to such time (i) trading in the Company’s common stock shall have been suspended by the Commission, (ii) trading in securities generally on the New York Stock Exchange shall have been suspended or limited or minimum prices shall have been established on such exchange, (iii) a banking moratorium shall have been declared either by Federal, New York State or State of Texas authorities or a material disruption in commercial banking or securities settlement or clearance services in the United States shall have occurred, or (iv) there shall have occurred any material change in the financial markets or any outbreak or escalation of hostilities, insurrection or armed conflict, declaration by the United States of a national emergency or war, or other calamity or crisis the effect of which on financial markets is such as to make it, in the sole judgment of the Representatives, impractical or inadvisable to proceed with the offering or delivery of the Securities as contemplated by this Agreement, the Time of Sale Information and the Final Prospectus (exclusive of any amendment or supplement thereto).

 

12.          Representations and Indemnities to Survive.  The respective agreements, representations, warranties, indemnities and other statements of the Company and Holdings or their respective officers and of the Underwriters set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by or on behalf of any Underwriter, the Company or Holdings or any of the officers, directors, employees, agents or controlling persons referred to in Section 9 hereof, and will survive delivery of and payment for the Securities.  The provisions of Sections 8 and 9 hereof shall survive the termination or cancellation of this Agreement.

 

13.          Notices.  All communications hereunder will be in writing and effective only on receipt, and, if sent to the Representatives, will be mailed, delivered or telefaxed to: Credit Suisse Securities (USA) LLC, Eleven Madison Avenue, New York, NY 10010-3629, Attention: IBCM-Legal; Deutsche Bank Securities Inc., 60 Wall Street, New York, New York 10005, Attention: High Yield; Goldman Sachs & Co. LLC, 200 West Street, New York, New York 10282, Attention: Registration Department, with a copy to the Legal Department; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, NY, 10179, Investment Grade Syndicate Desk - 3rd floor; and Mizuho Securities USA LLC, 320 Park Avenue — 12th Floor, New York, New York 10022, Facsimile No.: (212) 205-7812, Attention: Debt Capital Markets Desk; or, if sent to

 

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the Company or Holdings, will be mailed, delivered or telefaxed to Waste Management, Inc., Attn: General Counsel (fax: 713-209-9710) and confirmed to it at 1001 Fannin, Houston, Texas 77002, Attention: Legal Department.

 

14.          Successors.  This Agreement will inure to the benefit of and be binding upon the parties hereto and their respective successors and the officers, directors, employees, agents and controlling persons referred to in Section 9 hereof, and no other person will have any right or obligation hereunder.

 

15.          Applicable Law.  This Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York.

 

16.          Recognition of the U.S. Special Resolution Regimes.

 

(a)           In the event that any Underwriter that is a Covered Entity becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from such Underwriter of this Agreement, and any interest and obligation in or under this Agreement, will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if this Agreement, and any such interest and obligation, were governed by the laws of the United States or a state of the United States.

 

(b)           In the event that any Underwriter that is a Covered Entity or a BHC Act Affiliate of such Underwriter becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement that may be exercised against such Underwriter are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if this Agreement were governed by the laws of the United States or a state of the United States.

 

For purposes of this Section 16, the following definitions apply:

 

BHC Act Affiliate” has the meaning assigned to the term “affiliate” in, and shall be interpreted in accordance with, 12 U.S.C. § 1841(k).

 

Covered Entity” means any of the following:

 

(i)            a “covered entity” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

 

(ii)           a “covered bank” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

 

(iii)          a “covered FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

 

Default Right” has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

 

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U.S. Special Resolution Regime” means each of (A) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (B) Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations promulgated thereunder.

 

17.          Counterparts.  This Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement.

 

18.          Headings.  The section headings used herein are for convenience only and shall not affect the construction hereof.

 

19.          Definitions.  The terms that follow, when used in this Agreement, shall have the meanings indicated.

 

1940 Act” shall mean the Investment Company Act of 1940, as amended.

 

Act” shall mean the Securities Act of 1933, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

affiliate” shall mean a person that directly, or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified.

 

Base Prospectus” shall mean the prospectus referred to in Section 1(a) above contained in the Registration Statement at the Effective Date.

 

Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City or Houston, Texas.

 

Commission” shall mean the Securities and Exchange Commission.

 

Effective Date” shall mean each date and time that the Registration Statement, any post-effective amendment or amendments thereto and any Rule 462(b) Registration Statement became or become effective or are deemed to become effective under Rule 430A, Rule 430B and Rule 430C.

 

Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

Final Prospectus” shall mean the prospectus supplement relating to the Securities that was first filed with the Commission pursuant to Rule 424(b) after the Time of Sale, together with the Base Prospectus.

 

Preliminary Prospectus” shall mean the preliminary prospectus supplement relating to the Securities dated May 14, 2019 that was filed with the Commission pursuant to Rule 424(b) prior to the Time of Sale, together with the Base Prospectus.

 

31


 

Prospectus Delivery Period” shall mean such period of time after the first date of the public offering of the Securities as in the opinion of counsel for the Underwriters a prospectus relating to the Securities is required by law to be delivered (or required to be delivered but for Rule 172 under the Act) in connection with sales of the Securities by any Underwriter or dealer.

 

Registration Statement” shall mean the registration statement referred to in Section 1(a) above, including exhibits and financial statements, as amended at the Time of Sale (or, if not effective at the Time of Sale, in the form in which it shall become effective) and, in the event any post-effective amendment thereto or any Rule 462(b) Registration Statement becomes effective prior to the Closing Date, shall also mean such registration statement as so amended or such Rule 462(b) Registration Statement, as the case may be.  Such term shall include any Rule 430 Information deemed to be included therein at the Effective Date as provided by Rule 430A, Rule 430B or Rule 430C.

 

Rule 415,” “Rule 424,” “Rule 430A,” “Rule 430B,” “Rule 430C” and “Rule 462” refer to such rules under the Act.

 

Rule 430 Information” shall mean information with respect to the Securities and the offering thereof permitted to be omitted from the Registration Statement when it becomes effective pursuant to Rule 430A, Rule 430B or Rule 430C that is deemed to be part of the Registration Statement at the time of its effectiveness.

 

Rule 462(b) Registration Statement” shall mean a registration statement and any amendments thereto filed pursuant to Rule 462(b) relating to the offering covered by the registration statement referred to in Section 1(a) above.

 

Time of Sale” shall mean 6:00 P.M. New York time on May 14, 2019, the time when sales of the Securities were first made.

 

Trust Indenture Act” shall mean the Trust Indenture Act of 1939, as amended, and the rules and regulations of the Commission promulgated thereunder.

 

20.          Miscellaneous.  In accordance with the requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)), the Underwriters are required to obtain, verify and record information that identifies their respective clients, including the Company, which information may include the name and address of their respective clients, as well as other information that will allow the Underwriters to properly identify their respective clients.

 

[signature page follows]

 

32


 

If the foregoing is in accordance with your understanding of our agreement, please sign and return to us the enclosed duplicate hereof, whereupon this letter and your acceptance shall represent a binding agreement among the Company, Holdings and the several Underwriters.

 

 

Very truly yours,

 

 

 

WASTE MANAGEMENT, INC.

 

 

 

 

 

 

 

By:

/s/ David L. Reed

 

 

Name:

David L. Reed

 

 

Title:

Vice President and Treasurer

 

 

 

 

 

WASTE MANAGEMENT HOLDINGS, INC.

 

 

 

 

 

 

 

 

 

By:

/s/ David L. Reed

 

 

Name:

David L. Reed

 

 

Title:

Vice President and Treasurer

 

Signature Page to Underwriting Agreement

 


 

The foregoing Agreement is hereby confirmed and accepted as of the date first set forth above.

 

 

 

 

 

BY:

CREDIT SUISSE SECURITIES (USA) LLC

 

 

 

 

 

 

 

 

 

By:

/s/ Christopher Murphy

 

 

Name:

Christopher Murphy

 

 

Title:

Managing Director

 

 

 

 

 

BY:

DEUTSCHE BANK SECURITIES INC.

 

 

 

 

 

 

 

 

 

By:

/s/ Jeanmarie Genirs

 

 

Name:

Jeanmarie Genirs

 

 

Title:

Managing Director, Debt Syndicate

 

 

 

 

 

 

 

 

 

By:

/s/ Ryan Montgomery

 

 

Name:

Ryan Montgomery

 

 

Title:

Managing Director

 

 

 

 

 

BY:

GOLDMAN SACHS & CO. LLC

 

 

 

 

 

 

 

 

 

By:

/s/ Raffael Fiumara

 

 

Name:

Raffael Fiumara

 

 

Title:

Vice President

 

 

 

 

 

BY:

J.P. MORGAN SECURITIES LLC

 

 

 

 

 

 

 

 

 

By:

/s/ Som Bhattacharyya

 

 

Name:

Som Bhattacharyya

 

 

Title:

Executive Director

 

 

 

 

 

BY:

MIZUHO SECURITIES USA LLC

 

 

 

 

 

 

 

 

 

By:

/s/ Michael L. Saron

 

 

Name:

Michael L. Saron

 

 

Title:

Managing Director

 

 

 

 

 

For themselves and the other several Underwriters, if any, named in Schedule II to the foregoing Agreement.

 

 

Signature Page to Underwriting Agreement

 


 

SCHEDULE I

 

Filed Pursuant to Rule 433

Issuer Free Writing Prospectus dated May 14, 2019 relating to the

Preliminary Prospectus Supplement dated May 14, 2019

to Prospectus dated April 25, 2019

Registration Statement No. 333-231027

 

Pricing Term Sheet

 

$750,000,000 2.950% Senior Notes due 2024

$750,000,000 3.200% Senior Notes due 2026

$1,000,000,000 3.450% Senior Notes due 2029

$500,000,000 4.000% Senior Notes due 2039

$1,000,000,000 4.150% Senior Notes due 2049

 

Issuer:

 

Waste Management, Inc.

 

 

 

Guarantor:

 

Waste Management Holdings, Inc.

 

 

 

Trade Date:

 

May 14, 2019

 

 

 

Settlement Date:

 

T+6; May 22, 2019

 

 

 

Principal Amount:

 

2024 Notes: $750,000,000
2026 Notes: $750,000,000
2029 Notes: $1,000,000,000
2039 Notes: $500,000,000
2049 Notes: $1,000,000,000

 

 

 

Maturity Date:

 

2024 Notes: June 15, 2024
2026 Notes: June 15, 2026
2029 Notes: June 15, 2029
2039 Notes: July 15, 2039
2049 Notes: July 15, 2049

 

 

 

Coupon:

 

2024 Notes: 2.950%
2026 Notes: 3.200%
2029 Notes: 3.450%
2039 Notes: 4.000%
2049 Notes: 4.150%

 

 

 

Benchmark Treasury:

 

2024 Notes: 2.25% due April 30, 2024
2026 Notes: 2.375% due April 30, 2026
2029 Notes: 2.375% due May 15, 2029
2039 Notes: 3.000% due February 15, 2049
2049 Notes: 3.000% due February 15, 2049

 

 

 

Benchmark Treasury Price and Yield:

 

2024 Notes: 100-07 1/4 / 2.201%
2026 Notes: 100-14+ / 2.304%
2029 Notes: 99-18+ / 2.423%

 

Schedule I-1


 

 

 

2039 Notes: 102-27+ / 2.857%
2049 Notes: 102-27+ / 2.857%

 

 

 

Spread to Benchmark Treasury:

 

2024 Notes: +75 basis points
2026 Notes: +90 basis points
2029 Notes: +105 basis points
2039 Notes: +115 basis points
2049 Notes: +130 basis points

 

 

 

Yield to Maturity:

 

2024 Notes: 2.951%
2026 Notes: 3.204%
2029 Notes: 3.473%
2039 Notes: 4.007%
2049 Notes: 4.157%

 

 

 

Price to Public:

 

2024 Notes: 99.994% of face amount
2026 Notes: 99.973% of face amount
2029 Notes: 99.804% of face amount
2039 Notes: 99.896% of face amount
2049 Notes: 99.872% of face amount

 

 

 

Net Proceeds (after underwriting discounts and estimated expenses):

 

$3.963 billion

 

 

 

Interest Payment Dates:

 

2024 Notes, 2026 Notes and 2029 Notes: Semi-annually on June 15 and December 15, commencing on December 15, 2019

2039 Notes and 2049 Notes: Semi-annually on January 15 and July 15, commencing on January 15, 2020

 

 

 

Optional Redemption:

 

The 2024 Notes are redeemable at any time prior to May 15, 2024 (one month prior to the maturity date), in whole or from time to time in part, at the option of the Company, at a make whole redemption price using the applicable Treasury rate plus 12.5 basis points (as defined and described in further detail in the Preliminary Prospectus Supplement). The 2024 Notes are redeemable on or after May 15, 2024 (one month prior to the maturity date), in whole or from time to time in part, at the option of the Company, at par.

The 2026 Notes are redeemable at any time prior to April 15, 2026 (two months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at a make whole redemption price using the applicable Treasury rate plus 15 basis points (as defined and described in further detail in the Preliminary Prospectus Supplement). The 2026 Notes are redeemable on or after April 15, 2026 (two months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at par.

 

Schedule I-2


 

 

 

The 2029 Notes are redeemable at any time prior to March 15, 2029 (three months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at a make whole redemption price using the applicable Treasury rate plus 20 basis points (as defined and described in further detail in the Preliminary Prospectus Supplement). The 2029 Notes are redeemable on or after March 15, 2029 (three months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at par.

The 2039 Notes are redeemable at any time prior to January 15, 2039 (six months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at a make whole redemption price using the applicable Treasury rate plus 20 basis points (as defined and described in further detail in the Preliminary Prospectus Supplement). The 2039 Notes are redeemable on or after January 15, 2039 (six months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at par.

The 2049 Notes are redeemable at any time prior to January 15, 2049 (six months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at a make whole redemption price using the applicable Treasury rate plus 20 basis points (as defined and described in further detail in the Preliminary Prospectus Supplement). The 2049 Notes are redeemable on or after January 15, 2049 (six months prior to the maturity date), in whole or from time to time in part, at the option of the Company, at par.

 

 

 

Special Mandatory Redemption:

 

If the Company does not consummate the Merger (as defined under “Summary—Recent Developments” in the Preliminary Prospectus Supplement) on or prior to July 14, 2020, or, if prior to such date, the Merger Agreement is terminated for any reason, then, in either case, the Company will be required to redeem all of the outstanding 2024 notes, 2026 notes, 2029 notes and 2039 notes at a redemption price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the redemption date.

 

 

 

CUSIP/ISIN:

 

2024 Notes: 94106L BF5 / US94106LBF58
2026 Notes: 94106L BH1 / US94106LBH15
2029 Notes: 94106L BG3 / US94106LBG32
2039 Notes: 94106L BJ7 / US94106LBJ70
2049 Notes: 94106L BK4 / US94106LBK44

 

 

 

Joint Book-Running Managers:

 

Credit Suisse Securities (USA) LLC

 

Schedule I-3


 

 

 

Deutsche Bank Securities Inc.
Goldman Sachs & Co. LLC
J.P. Morgan Securities LLC
Mizuho Securities USA LLC
Barclays Capital Inc.
BNP Paribas Securities Corp.
BofA Securities, Inc.
Citigroup Global Markets Inc.
SMBC Nikko Securities America, Inc.
U.S. Bancorp Investments, Inc.
Wells Fargo Securities, LLC

 

 

 

Co-Managers:

 

MUFG Securities Americas Inc.
PNC Capital Markets LLC
Scotia Capital (USA) Inc.
Academy Securities, Inc.
BNY Mellon Capital Markets, LLC
Comerica Securities, Inc.
MFR Securities, Inc.
Siebert Cisneros Shank & Co., L.L.C.

 

MiFID II professionals/ECPs-only/No PRIIPs KID — in the European Economic Area (EEA), the manufacturer target market (MiFID II product governance) is eligible counterparties and professional clients only (all distribution channels). No PRIIPs key information document (KID) has been prepared as not available to retail in the EEA.

 

The information in this term sheet supplements the information provided in the preliminary prospectus supplement dated May 14, 2019. To the extent information in this term sheet conflicts with information in the preliminary prospectus supplement, this term sheet controls.

 

The issuer has filed a registration statement (including a prospectus) and prospectus supplement with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and the prospectus supplement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by contacting: (1) Credit Suisse Prospectus Department toll-free at 1-800-221-1037; (2) Deutsche Bank Securities Inc. toll-free at 1-800-503-4611; (3) Goldman Sachs & Co. LLC collect at 1-212-902-1171 (Prospectus Department); (4) J.P. Morgan Securities LLC collect at 1-212-834-4533; or (5) Mizuho Securities USA LLC toll-free at 1-866-271-7403.

 

Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers were automatically generated as a result of this communication being sent via email or another communication system.

 

Schedule I-4


 

SCHEDULE II

 

Representatives

 

Credit Suisse Securities (USA) LLC

Deutsche Bank Securities Inc.

Goldman Sachs & Co. LLC

J.P. Morgan Securities LLC

Mizuho Securities USA LLC

 

Underwriters

 

 

 

Principal
Amount of
2024 Notes
to be
Purchased

 

Principal
Amount of
2026 Notes
to be
Purchased

 

Principal
Amount of
2029 Notes
to be
Purchased

 

Principal
Amount of
2039 Notes
to be
Purchased

 

Principal
Amount of
2049 Notes
to be
Purchased

 

Credit Suisse Securities (USA) LLC

 

$

82,500,000

 

$

82,500,000

 

$

110,000,000

 

$

55,000,000

 

$

110,000,000

 

Deutsche Bank Securities Inc.

 

$

82,500,000

 

$

82,500,000

 

$

110,000,000

 

$

55,000,000

 

$

110,000,000

 

Goldman Sachs & Co. LLC

 

$

82,500,000

 

$

82,500,000

 

$

110,000,000

 

$

55,000,000

 

$

110,000,000

 

J.P. Morgan Securities LLC

 

$

82,500,000

 

$

82,500,000

 

$

110,000,000

 

$

55,000,000

 

$

110,000,000

 

Mizuho Securities USA LLC

 

$

82,500,000

 

$

82,500,000

 

$

110,000,000

 

$

55,000,000

 

$

110,000,000

 

Barclays Capital Inc.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

BNP Paribas Securities Corp.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

BofA Securities, Inc.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

Citigroup Global Markets Inc.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

SMBC Nikko Securities America, Inc.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

U.S. Bancorp Investments, Inc.

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

Wells Fargo Securities, LLC

 

$

37,500,000

 

$

37,500,000

 

$

50,000,000

 

$

25,000,000

 

$

50,000,000

 

MUFG Securities Americas Inc.

 

$

18,750,000

 

$

18,750,000

 

$

25,000,000

 

$

12,500,000

 

$

25,000,000

 

PNC Capital Markets LLC

 

$

18,750,000

 

$

18,750,000

 

$

25,000,000

 

$

12,500,000

 

$

25,000,000

 

Scotia Capital (USA) Inc.

 

$

18,750,000

 

$

18,750,000

 

$

25,000,000

 

$

12,500,000

 

$

25,000,000

 

Academy Securities, Inc.

 

$

3,750,000

 

$

3,750,000

 

$

5,000,000

 

$

2,500,000

 

$

5,000,000

 

BNY Mellon Capital Markets, LLC

 

$

3,750,000

 

$

3,750,000

 

$

5,000,000

 

$

2,500,000

 

$

5,000,000

 

Comerica Securities, Inc.

 

$

3,750,000

 

$

3,750,000

 

$

5,000,000

 

$

2,500,000

 

$

5,000,000

 

MFR Securities, Inc.

 

$

3,750,000

 

$

3,750,000

 

$

5,000,000

 

$

2,500,000

 

$

5,000,000

 

Siebert Cisneros Shank & Co., L.L.C.

 

$

3,750,000

 

$

3,750,000

 

$

5,000,000

 

$

2,500,000

 

$

5,000,000

 

TOTAL

 

$

750,000,000

 

$

750,000,000

 

$

1,000,000,000

 

$

500,000,000

 

$

1,000,000,000

 

 

Schedule II-1


 

ANNEX A

 

FREE WRITING PROSPECTUSES

 

Final Pricing Term Sheet, substantially in the form of Schedule I attached to this Agreement.

 

Annex A-1


 

ANNEX B

 

REVIEWED AGREEMENTS

 

1.                                      Indenture for Senior Debt Securities dated September 10, 1997, among Waste Management, Inc. (formerly known as USA Services Inc.) and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as Trustee

 

2.                                      Each of the Officers’ Certificates delivered pursuant to Section 301 of the Indenture dated September 10, 1997 by and between Waste Management, Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee, which established the terms and form of Waste Management, Inc.’s: (i) 3.150% Senior Notes due 2027, (ii) 7.00% Senior Notes due 2028, (iii) 7.375% Senior Notes due 2029, (iv) 7.75% Senior Notes due 2032, (v) 6.125% Senior Notes due 2039, (vi) 4.75% Senior Notes due 2020, (vii) 4.60% Senior Notes due 2021, (viii) 2.90% Senior Notes due 2022, (ix) 3.50% Senior Notes due 2024, (x) 3.125% Senior Notes due 2025, (xi) 3.90% Senior Notes due 2035, (xii) 4.10% Senior Notes due 2045 and (xiii) 2.40% Senior Notes due 2023

 

3.                                      Each Guarantee Agreement by Waste Management Holdings, Inc. in favor of The Bank of New York Mellon Trust Company, N.A., as Trustee for the holders of Waste Management, Inc.’s: (i) 3.150% Senior Notes due 2027, (ii) 7.00% Senior Notes due 2028, (iii) 7.375% Senior Notes due 2029, (iv) 7.75% Senior Notes due 2032, (v) 6.125% Senior Notes due 2039, (vi) 4.75% Senior Notes due 2020, (vii) 4.60% Senior Notes due 2021, (viii) 2.90% Senior Notes due 2022, (ix) 3.50% Senior Notes due 2024, (x) 3.125% Senior Notes due 2025, (xi) 3.90% Senior Notes due 2035, (xii) 4.10% Senior Notes due 2045 and (xiii) 2.40% Senior Notes due 2023

 

4.                                      $2.75 Billion Fourth Amended and Restated Revolving Credit Agreement dated as of June 26, 2018 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

 

5.                                      Commercial Paper Dealer Agreement, substantially in the form as executed with each of Mizuho Securities USA Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and J.P. Morgan Securities LLC, as Dealer, dated August 22, 2016, which agreement is filed as Exhibit 10.10 to Waste Management, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018

 

6.                                      Commercial Paper Issuing and Paying Agent Agreement between Waste Management, Inc. and Bank of America, National Association dated August 15, 2016, which agreement is filed as Exhibit 10.11 to Waste Management, Inc.’s Annual Report on Form 10-K for the year ended December 31, 2018

 

Annex B-1


Exhibit 4.2

 

WASTE MANAGEMENT, INC.
Officers’ Certificate Delivered Pursuant to
Section 301 of the Indenture dated as of September 10, 1997

 

The undersigned, the Vice President and Treasurer, and the Vice President and Corporate Secretary of Waste Management, Inc. (the “Company”), hereby certify that:

 

1.                                      This Certificate is delivered to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), pursuant to Sections 102 and 301 of the Indenture dated as of September 10, 1997 between the Company, formerly known as USA Waste Services, Inc., and the Trustee in connection with the Company Order dated May 22, 2019 (the “Order”) for the authentication and delivery by the Trustee of $750,000,000 aggregate principal amount of 2.950% Senior Notes due 2024 (the “Notes”).

 

2.                                      The undersigned have read Sections 102, 103, 301 and 303 of the Indenture and the definitions in the Indenture relating thereto.

 

3.                                      The statements made herein are based either upon the personal knowledge of the persons making this Certificate or on information, data and reports furnished to such persons by the officers, counsel, department heads or employees of the Company who have knowledge of the facts involved.

 

4.                                      The undersigned have examined the Order, and they have read the covenants, conditions and provisions of the Indenture relating thereto.

 

5.                                      In the opinion of the persons making this Certificate, they have made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not all covenants and conditions provided for in the Indenture with respect to the Order have been complied with.

 

6.                                      All covenants and conditions (including all conditions precedent) provided in the Indenture to the authentication and delivery by the Trustee of $750,000,000 aggregate principal amount of the Notes have been complied with, and such Notes may be delivered in accordance with the Order as provided in the Indenture.

 

7.                                      The terms of the Notes (including the Form of Note) as set forth in Annex A to this Officers’ Certificate have been approved by officers of the Company as authorized by resolutions duly adopted on April 10, 2019 by the Board of Directors of the Company, copies of which are attached hereto as Annex B, are in full force and effect as of the date hereof.

 

[signature page follows]

 


 

IN WITNESS WHEREOF, the undersigned has hereunto executed this Officers’ Certificate as of the date first written above.

 

 

 

 

David L. Reed

 

Vice President and Treasurer

 

 

 

 

 

Courtney A. Tippy

 

Vice President and Corporate Secretary

 


 

Annex A

Terms of the Notes

 

Pursuant to authority granted by the Board of Directors of the Company on April 10, 2019 and the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019, the Company has approved the establishment, issuance, execution and delivery of a new series of Securities (as defined in the Indenture) to be issued under the Indenture dated as of September 10, 1997 (the “Indenture”), between the Company, formerly known as USA Waste Services, Inc., and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), the terms of which are set forth below. Capitalized terms used but not defined herein are used herein as defined in the Indenture.

 

(1)                                 The title of the series of Securities shall be “2.950% Senior Notes due 2024” (the “Notes”).

 

(2)                                 The Notes shall be general unsecured, senior obligations of the Company.

 

(3)                                 The initial aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture shall be $750,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 906 or 1107 of the Indenture); provided, however, that the authorized aggregate principal amount of such series may be increased before or after the issuance of any Notes of such series by a Board Resolution (or action pursuant to a Board Resolution) to such effect.

 

(4)                                 The principal amount of each Note shall be payable on June 15, 2024.

 

(5)                                 Each Note shall bear interest from May 22, 2019 at the fixed rate of 2.950% per annum; the Interest Payment Dates on which such interest shall be payable shall be June 15 and December 15, of each year, commencing December 15, 2019, until maturity unless such date falls on a day that is not a Business Day, in which case, such payment shall be made on the next day that is a Business Day. The Regular Record Date for the determination of Holders to whom interest is payable shall be June 1 or December 1, respectively, immediately preceding such date, as the case may be.

 

(6)                                 If a “Change of Control Triggering Event” (as defined in the Notes) occurs, each Holder of the Notes may require the Company to purchase all or a portion of such Holder’s Notes at a price equal to 101% of the principal amount, plus accrued interest, if any, to the date of purchase, on the terms and subject to the conditions set forth in the Notes.

 

(7)                                 The Notes are to be issued as Registered Securities only. Each Note is to be issued as a book-entry note (“Book-Entry Note”) but in certain circumstances may be represented by Notes in definitive form. The Book-Entry Notes shall be issued, in whole or in part, in the form of one or more Notes in global form as contemplated by Section 203 of the Indenture. The Depositary with respect to the Book-Entry Notes shall be The Depository Trust Company, New York, New York.

 


 

(8)                                 Payments of principal of, premium, if any, and interest due on the Notes representing Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(9)                                 Before the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the Redemption Date (as defined in the Notes) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 12.5 basis points; plus, in either case, accrued interest to the Redemption Date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the Redemption Date. “Par Call Date” means May 15, 2024.

 

(10)                          The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption (other than with respect to a Special Mandatory Redemption Event), sinking fund or analogous provisions or at the option of a Holder thereof.

 

(11)                          The Notes will be subject to defeasance and discharge as contemplated by Section 1302 of the Indenture and to covenant defeasance under Section 1303 of the Indenture.

 

(12)                          The Notes shall be entitled to the benefit of the covenants contained in Sections 1008 and 1009 of the Indenture.

 

(13)                          The Bank of New York Mellon Trust Company, N.A. shall serve initially as Security Registrar for the Notes.

 

(14)                          The Notes shall be substantially in the form of Exhibit A hereto.

 

(15)                          The Notes will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee Agreement dated May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Notes until release thereof as set forth in Section 6 of the Guarantee.

 


 

(16)                          If the Company does not consummate the Merger on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), then, in either case, the Company shall redeem all of the Outstanding Notes at a Redemption Price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the Redemption Date, on the terms and subject to the conditions set forth in the Notes. “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

(17)                          The Notes shall be subject to the satisfaction and discharge provisions set forth in Section 401 of the Indenture, as such provisions are supplemented or modified by the terms and conditions set forth in the Notes in accordance with the Indenture.

 


 

BOOK-ENTRY SECURITY

 

THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

RGN

 

Principal Amount

 

 

 

 

WASTE MANAGEMENT, INC.

U.S. $                  ,
which may be decreased
by the Schedule of
Exchanges of Definitive
Security attached hereto

 

 

 

 

2.950% SENIOR NOTES DUE 2024

 

 

 

 

 

 

CUSIP 94106L BF5

 

WASTE MANAGEMENT, INC., a Delaware corporation (the “Company,” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the office or agency of the Company, the principal sum of                 Million ($               ) U.S. dollars, or such lesser principal sum as is shown on the attached Schedule of Exchanges of Definitive Security, on June 15, 2024 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest at an annual rate of 2.950% payable on June 15 and December 15 of each year, to the person in whose name this Security is registered at the close of business on the record date for such interest, which shall be the preceding June 1 or

 


 

December 1, respectively, payable commencing December 15, 2019, with interest accruing from May 22, 2019, or the most recent date to which interest has been paid.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

The statements in the legends set forth above are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Securities of an initial aggregate of U.S. $750,000,000 in principal amount designated as the 2.950% Senior Notes due 2024 of the Company and is governed by the Indenture dated as of September 10, 1997, duly executed and delivered by the Company, formerly known as USA Waste Services, Inc., to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association) as trustee (the “Trustee”), as supplemented by Board Resolutions (as defined in the Indenture) (such Indenture and Board Resolutions, collectively, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.

 

If and to the extent that any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended, such required provision shall control.

 

The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in accordance with the terms of the Indenture without charge.

 


 

This Security shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated:

WASTE MANAGEMENT, INC.,

 

a Delaware corporation

 

 

 

By:

 

 

 

David L. Reed

 

 

Vice President and Treasurer

 

 

 

Attest:

 

 

 

By:

 

 

 

Courtney A. Tippy

 

 

Vice President and Corporate Secretary

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Date of Authentication:

The Bank of New York Mellon Trust Company, N.A., as Trustee

 

 

 

By:

 

 

 

Authorized Officer

 


 

REVERSE OF BOOK-ENTRY SECURITY

 

WASTE MANAGEMENT, INC.

 

2.950% SENIOR NOTES DUE 2024

 

This Security is one of a duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 2.950% Senior Notes due 2024 of the Company, in initial aggregate principal amount of $750,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Company promises to pay interest on the principal amount of this Security at the rate of 2.950% per annum.

 

The Company will pay interest semi-annually on June 15 and December 15 of each year (each an “Interest Payment Date”), commencing December 15, 2019. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from May 22, 2019. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the rate of 2.950% per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Company shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a Special Record Date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. Except as provided below, the Company shall pay principal and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts (“U.S. Legal Tender”). Payments in respect of a Book-Entry Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the

 


 

Depository. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Company maintained for such purpose within the Borough of Manhattan, the City of New York, which initially will be at the corporate trust office of The Bank of New York Mellon, located at 101 Barclay Street, Floor 21W, New York, New York, 10286 or at the option of the Company, payment of interest may be made by check mailed to the Holders on the Regular Record Date or on the Special Record Date at their addresses set forth in the Security Register of Holders.

 

3.                                      Paying Agent and Registrar.

 

Initially, The Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or co-Registrar at any time upon notice to the Trustee and the Holders. The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent, Registrar or co-Registrar.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Company issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Indenture and all indentures supplemental thereto, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture, and those terms stated in the Officers’ Certificate to the Trustee, duly authorized by resolutions of the Board of Directors of the Company on April 10, 2019 (the “Resolutions”) and the written consents of the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019 (the “Consents”). The Securities are subject to all such terms, and Holders of Securities are referred to the Indenture, all indentures supplemental thereto, said Act, said Resolutions and said Consents and Officers’ Certificate for a statement of them. The Securities of this series are general unsecured obligations of the Company limited with an initial aggregate principal amount of $750,000,000.

 

5.                                      Special Mandatory Redemption.

 

If the Merger is not completed on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), the Company shall redeem all of the Outstanding Securities in whole at a special mandatory Redemption Price (the “Special Mandatory Redemption Price”) equal to 101% of the aggregate principal amount of such Securities, plus accrued but unpaid interest on the principal amount of such Securities to, but not including, the Special Mandatory Redemption Date (as defined below).

 

Upon the occurrence of a Special Mandatory Redemption Event, the Company shall promptly (but in no event later than 5 Business Days following such Special Mandatory Redemption Event) notify the Trustee in writing of such event, and shall, no later than 5 Business Days following such notice to the Trustee, mail (or with respect to Securities in global form, to the extent permitted or required by applicable procedures or regulations of the Depository, send electronically) a notice of redemption to the registered address of each Holder of the Securities

 


 

(such date of notification to the Holders, the “Special Mandatory Redemption Notice Date”) fixing the date of such mandatory redemption, which date will be no earlier than 3 Business Days and no later than 30 days from the Special Mandatory Redemption Notice Date (such date, the “Special Mandatory Redemption Date”), in each case, in accordance with Section 106 of the Indenture. The Company shall notify each Holder in accordance with Section 106 of the Indenture that all of such Outstanding Securities shall be redeemed at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date automatically and without any further action by the Holders of such Securities. At or prior to 12:00 p.m. (New York City time) on the Business Day immediately preceding the Special Mandatory Redemption Date, the Company shall deposit with the Trustee funds sufficient to pay the Special Mandatory Redemption Price for such Securities. If such deposit is made as provided above, all of the Outstanding Securities will cease to bear interest on and after the Special Mandatory Redemption Date.

 

Upon the occurrence of the closing of the Merger, the foregoing provisions regarding the Special Mandatory Redemption Event will cease to apply.

 

For purposes of this Section 5, “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

6.                                      Optional Redemption.

 

Before the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price (the “Make-Whole Price”) equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest on the Securities that would be due if such Securities matured on the Par Call Date (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 12.5 basis points; plus, in either case, accrued interest to the Redemption Date.

 

On or after the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus accrued interest on the Securities to be redeemed to the Redemption Date.

 

Securities called for redemption become due on the Redemption Date. Notices of redemption will be mailed at least 10 but not more than 60 days before the Redemption Date to each holder of record of the Securities to be redeemed at its registered address. The notice of redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the Redemption Price or, if not ascertainable, the manner of determining the Make-Whole Price and the place(s) that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the Company defaults in payment of the Make-Whole Price, interest will cease to accrue on any Securities that have been called for redemption at the Redemption Date. If less than all the Securities are redeemed at any time, the Trustee will

 


 

select the Securities to be redeemed on a pro rata basis or by any other method the Trustee deems fair and appropriate (or with respect to Securities in global form, by such method as the Depository may require).

 

For purposes of determining the Make-Whole Price, the following definitions are applicable:

 

“Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities, calculated as if the maturity date of such Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Securities.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by us to act as the Independent Investment Banker from time to time.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means May 15, 2024.

 

“Reference Treasury Dealer” means (i) each of Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities, an average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

Except as set forth in Section 5 and in this Section 6, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 


 

The Securities may be redeemed in part in a minimum principal amount of $2,000, or any integral multiple of $1,000 in excess thereof.

 

Any such redemption will also comply with Article Eleven of the Indenture.

 

7.                                      Change of Control Offer.

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Securities as described in Section 6, or a Special Mandatory Redemption Event has occurred prior to such date as described in Section 5, the Company shall make an offer (a “Change of Control Offer”) to each Holder of the Securities to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of Securities repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Securities repurchased to the date of repurchase, subject to the right of holders of record on the applicable record date to receive interest due on the next Interest Payment Date.

 

Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders of the Securities describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the applicable notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

 

Upon the Change of Control Payment Date, the Company shall, to the extent lawful:

 

·                                          accept for payment all Securities or portions of Securities properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

·                                          deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

 

·                                          deliver or cause to be delivered to the Trustee the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of Securities being repurchased.

 

The Company need not make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities if there has occurred and is continuing on the

 


 

Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

 

The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Offer provisions of this Security, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of this Security by virtue of any such conflict.

 

For purposes of the Change of Control Offer provisions of the Securities, the following terms are applicable:

 

“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Company or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Voting Stock of the Company outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person, measured by voting power rather than number of shares, immediately after giving effect to such transaction; or (4) the adoption of a plan relating to the liquidation or dissolution of the Company.

 

Notwithstanding the preceding, a transaction will not be deemed to involve a Change of Control under clause (2) above if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of Voting Stock of the Company immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. The term ‘‘person,’’ as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 


 

“Fitch” means Fitch Inc. and its successors.

 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P and (2) if any of Fitch, Moody’s or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a ‘‘nationally recognized statistical rating organization’’ within the meaning of Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of our Board of Directors) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

“Rating Event” means the rating on the Securities is lowered by at least two of the three Rating Agencies and the Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies, in any case on any day during the period (which period will be extended so long as the rating of the Securities is under publicly announced consideration for a possible downgrade by any of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control.

 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

“Voting Stock” means, with respect to any specified ‘‘person’’ (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

8.                                      Denominations; Transfer; Exchange.

 

The Securities are issued in registered form, without coupons, in a minimum denomination of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Securities Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

9.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

10.                               Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the Outstanding Debt Securities of each series affected. Without consent of any Holder, the parties thereto may amend or supplement the

 


 

Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency, or make any other change that does not adversely affect the interests of any Holder of a Security in any material respect. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

11.                               Defaults and Remedies.

 

If an Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Securities then Outstanding may declare the principal amount of all the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made and before judgment or decree for payment of the money due has been obtained by the Trustee as provided in the Indenture, the Holders of a majority in principal amount of the Outstanding Securities, by written notice to the Company and to the Trustee, may rescind and annul such declaration and its consequences if (1) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all Securities, (B) the principal of (and premium, if any, on) any Securities which has become due otherwise than by such declaration of acceleration and any interest thereon at the rate prescribed therefor herein, (C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate prescribed therefor herein, and (D) all sums paid or advanced by the Trustee and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and (2) all Events of Default under the Indenture with respect to the Securities, other than the nonpayment of the principal of Securities which has become due solely by such declaration acceleration, shall have been cured or shall have been waived. No such rescission shall affect any subsequent Event of Default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

12.                               Trustee Dealings with Company.

 

The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company and its Affiliates and any subsidiary of the Company’s Affiliates, and may otherwise deal with the Company and its Affiliates as if it were not the Trustee.

 

13.                               Authentication.

 

This Security shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on the other side of this Security.

 


 

14.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

15.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

16.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

17.                               No Recourse.

 

No recourse under or upon any obligation, covenant or agreement contained in the Indenture or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, past, present or future stockholder, officer or director, as such of the Company or of any successor, either directly or through the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Security by the Holder and as part of the consideration for the issue of the Security.

 

18.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

19.                               Guarantee.

 

The Securities will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee, dated as of May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Securities until release thereof as set forth in Section 6 of the Guarantee.

 


 

20.                              Satisfaction and Discharge.

 

The Securities will be subject to Section 401 of the Indenture; provided, however, that solely with respect to the Securities, the following sentence shall be added to the end of Section 401(1)(B) of the Indenture: “(provided that, upon any redemption that requires the payment of any make-whole or other premium, (x) the amount of cash that must be deposited shall be determined using an assumed applicable premium calculated as of the date of such deposit and (y) the Company shall deposit any deficit in trust on or prior to the Redemption Date as necessary to pay the applicable premium as determined by such date)”.

 


 

SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY

 

The following exchanges of a part of this Book-Entry Security for definitive Securities have been made:

 

Date of Exchange

 

Amount of
decrease in
Principal Amount
of this Book-Entry
Security

 

Amount of increase
in Principal
Amount of this
Book-Entry
Security

 

Principal Amount
of this Book-Entry
Security following
such decrease (or
increase)

 

Signature of
authorized officer
of Trustee or
Security Custodian

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Annex B

Resolutions of the Board of Directors

of Waste Management, Inc.

 

WHEREAS, there has been considered by the Board a draft of an Agreement and Plan of Merger, a summary of the principal terms of which has been previously provided to the Board, (the “Merger Agreement”) by and among the Company, Everglades Merger Sub Inc., a Delaware corporation and wholly-owned indirect subsidiary of the Company (“Merger Sub”) and Advanced Disposal Services, Inc., a Delaware corporation (“Advanced”), whereby, among other things, subject to the terms and conditions contained in, and as more fully described in, the Merger Agreement, Merger Sub will merge with and into Advanced (the “Merger”), with Advanced surviving the Merger as a wholly-owned indirect subsidiary of the Company (capitalized terms used but not defined herein shall have the meaning given such terms in the Merger Agreement);

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

WHEREAS, the Board resolved in August 2018 to authorize the Company to prepare and file a new registration statement with the Securities and Exchange Commission (the “SEC”) and to offer in one or more offerings an aggregate of $3,000,000,000 of securities without further action by the Board (the “August 2018 Authorization”);

 

WHEREAS, the Board desires to amend and restate the August 2018 Authorization to, among other things, provide for additional offerings of securities to finance the Merger Consideration;

 

WHEREAS, the Board desires to provide for potential offerings of debt securities denominated in Canadian dollars by the Company and/or its subsidiaries;

 

WHEREAS, the Company is party to that certain indenture, dated as of September 10, 1997 (as amended, restated or otherwise modified from time to time, the “Company Existing Indenture”), by and among the Company, The Bank of New York Mellon Trust Company, N.A., as successor trustee to Texas Commerce Bank National Association, and pursuant to the Company Existing Indenture, has issued, among other securities: (i) the Company’s 7.00% Senior Notes due 2028 (the “2028 Notes”), (ii) the Company’s 7.375% Senior Notes due 2029 (the “2029 Notes”), (iii) the Company’s 7.75% Senior Notes due 2032 (the “2032 Notes”), and (iv) the Company’s 6.125% Senior Notes due 2039 (the “2039 Notes”);

 

WHEREAS Waste Management Holdings, Inc., a wholly-owned subsidiary of the Company (“WMHI”), is a party to that certain indenture, dated as of June 1, 1993, by and among WMHI, and The Fuji Bank and Trust Company, as trustee (as amended, restated or otherwise modified from time to time, the “WMHI Existing Indenture”), and has issued, pursuant to the WMHI Existing Indenture, its 7.10% Senior Notes due 2026 (the “2026 Notes,” and together with the 2028 Notes, the 2029 Notes, the 2032 Notes and the 2039 Notes, the “Specified Existing Notes”); and

 

WHEREAS the Board desires to provide for the eventual redemption and/or refinancing of the Specified Existing Notes and deems it advisable to approve the Company’ pursuit of tender offers and/or redemption transactions with respect to the Specified Existing Notes.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

3.              Registration Statement; Securities Offerings.

 

NOW, THEREFORE, BE IT RESOLVED, that the Company is hereby authorized to prepare and file with the SEC a shelf registration statement on Form S-3 (the “New Registration Statement”), pursuant to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), which New Registration Statement is anticipated to be filed with the SEC after the Company’s earnings announcement for the three months ended March 31, 2019 and may provide for the

 


 

registration of, among other things, unsecured senior or subordinated debentures, notes or other evidences of indebtedness of the Company (collectively “Registered Debt Securities”); common stock of the Company, par value $0.01 (“Company Common Stock”); warrants to purchase shares of Company Common Stock; shares of preferred stock in such series with such designations, powers, preferences and relative and other special rights and qualifications, limitations and restrictions as the Board of Directors may from time to time authorize; guarantees of securities by WMHI; and any units consisting of one or more of the foregoing (the Registered Debt Securities, Company Common Stock, warrants, preferred stock, guarantees and units eligible to be sold pursuant to the New Registration Statement are collectively referred to herein as the “Registered Securities”), to be issued from time to time;

 

RESOLVED FURTHER, that each of the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to issue, offer and sell an aggregate of up to $6,000,000,000 of Securities (as defined below) without further approval of the Board of Directors pursuant to the New Registration Statement or a Canadian Offering (as defined below), as applicable;

 

RESOLVED FURTHER, that authority to make new issuances of Registered Securities pursuant to the August 2018 Authorization shall be deemed rescinded and superseded hereby;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees (as established pursuant to these resolutions) be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and cause to be filed with the SEC any and all amendments (including, without limitation, post-effective amendments) or supplements to the New Registration Statement and any prospectus included therein and any additional documents which such officer or employee may deem necessary or desirable with respect to the registration and offering of the Registered Securities, and such amendments, supplements, registration statements and documents to be in such form as the officer or employee executing the same may approve, as conclusively evidenced by his execution thereof;

 

RESOLVED FURTHER, that the Chief Legal Officer of the Company be, and he hereby is, designated and appointed the agent for service of process on the Company under the Securities Act in connection with the New Registration Statement and any and all amendments and supplements thereto, with all powers incident to such appointment;

 

RESOLVED FURTHER, that any of the Authorized Officers be, and each of them hereby is, authorized, at any time and from time to time, on behalf of the Company, (i) to determine, subject to the limits that shall be set by the Board, the number of shares of Company Common Stock, preferred stock or other equity securities to be offered and sold by the Company pursuant to the New Registration Statement, including any shares underlying warrants or convertible Debt Securities, (ii) to authorize the reserve and issuance of such shares and (iii) to take any and all action and to do or cause to be done any and all things which may appear to any of the Authorized Officers to be necessary or advisable in order to authorize, offer, issue, and sell such shares of Company Common Stock, pursuant to the New Registration Statement and the applicable purchase agreement, which action could be taken or which things could be done by the Board;

 

RESOLVED FURTHER, that the Company is authorized to offer, issue and sell, or cause any subsidiary of the Company to offer, issue and sell, debt securities denominated in Canadian dollars (the “Canadian Notes,” together with any Canadian Notes Guarantees (as defined below) the “Canadian Securities,” and together with the Registered Securities, the “Securities”) in transactions exempt from registration under the Securities Act, on terms and conditions to be determined by the Authorized Officers from time to time (the “Canadian Offering”);

 

RESOLVED FURTHER, that the Authorized Officers, and each of them, shall have full authority to authorize and approve the terms of the Canadian Offering (including, without limitation, the aggregate amount to be sold, the initial offering price, the prices at which such Canadian Securities will be sold to the applicable Initial Purchasers (as defined below) and such other terms as may be necessary) and the final terms of the purchase agreement relating to the Canadian Offering (the “Purchase Agreement”),

 


 

any guarantors of such Canadian Notes (collectively, the “Canadian Notes Guarantors”) and the initial purchasers in connection with the Canadian Offering (the “Initial Purchasers”) and such other matters as the Authorized Officers, or any of them, shall determine to be necessary or advisable in connection with the issuance of the Canadian Securities and to carry out the purposes and intent of the foregoing resolutions;

 

RESOLVED FURTHER, that the Company is authorized to cause the Canadian Notes to be guaranteed on a senior secured basis (the “Canadian Notes Guarantees”) by the Canadian Notes Guarantors if advisable in the judgment of any of the Authorized Officers;

 

RESOLVED FURTHER, that the preparation and use of a preliminary offering memorandum relating to the Canadian Offering (the “Preliminary Offering Memorandum”) is hereby ratified, confirmed, authorized and approved, and that the Authorized Officers or any of them acting together or individually, and those other employees of the Company as any of them shall designate, are hereby authorized and directed in the name and on behalf of the Company to prepare a pricing supplement (the “Pricing Supplement”) in connection with the Canadian Offering, and the final offering memorandum (the “Final Offering Memorandum”) relating to the Canadian Offering, and any supplements or amendments thereto as any of the Authorized Officers deems necessary or appropriate in connection with the Canadian Offering, such approval to be conclusively evidenced by the distribution of such supplement or amendment by or on behalf of the Company to the Initial Purchasers;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be and hereby are authorized and directed in the name and on behalf of the Company to take any and all action which they may deem necessary or advisable in order to effect the registration or qualification of all or part of the Registered Securities to be registered under the Securities Act, and any and all action for the Securities to be eligible for offer and sale under the securities or Blue Sky laws of the states of the United States of America or similar laws and regulations of other jurisdictions, including Canada, and in connection therewith, to execute, acknowledge, verify, deliver, file and publish all such applications, reports, issuer’s covenants, resolutions, consents to service of process, or appointments of governmental officials for the purpose of receiving and accepting service of process on the laws, and to take any and all further action which they may deem necessary or advisable in order to maintain any such registration or qualification for as long as they deem the same to be in the best interest of the Company;

 

RESOLVED FURTHER, that the form of any additional resolutions required in connection with the appropriate qualification or registration of the Securities for offer and sale under such securities or Blue Sky laws, be and hereby is approved and adopted, provided the appropriate officers of the Company, on the advice of counsel, consider the adoption thereof necessary or advisable, in which case the Secretary or any Assistant Secretary of the Company is hereby directed to insert as an appendix hereto a copy of such resolutions, which shall thereupon be deemed to have been adopted by this Board of Directors with the same force and effect as if set out verbatim herein;

 

RESOLVED FURTHER, that any of the Authorized Officers or authorized employees be, and each of them hereby is, authorized to approve at any time and from time to time, the engagement of one or more investment banks to provide services in connection with any offering of Securities, one or more forms of underwriting or purchase agreement (and any related terms agreement) and agency agreement (and related purchase agreement) and any other agreement or agreements any of such persons may deem necessary or appropriate in connection with the arrangements for the purchase of any of the Securities, and that such persons be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such agreement or agreements in substantially the form approved by any of them, with such changes therein as the person executing the same may approve, as conclusively evidenced by the execution and delivery thereof, it being understood that, in the case of any terms agreement or purchase agreement referred to above, it shall not be necessary for any of the Authorized Officers to approve any individual agreement pursuant to which Securities are to be sold if the form thereof has previously been approved as provided in this resolution;

 

RESOLVED FURTHER, that any of the Authorized Officers may, at any time and from time to time, on behalf of the Company, authorize the issuance of one or more series of Securities under one or

 


 

more indentures, within any limits that may be set by the Board, and in connection therewith establish, or, if all of the Securities of such series may not be originally issued at one time, to the extent deemed appropriate, prescribe the manner of determining, within any limitations established by any of the Authorized Officers and subject in either case to the limitations set forth in these resolutions, all of the terms of such Securities;

 

RESOLVED FURTHER, that, in connection with any such series of Securities (but without limiting the authority hereinafter in these resolutions conferred with respect to the issuance of Securities of a series which may not all be originally issued at one time), any of the Authorized Officers is authorized at any time or from time to time to determine the price or prices to be received by the Company in any offering or sale of Securities of such series, any public offering price or prices thereof, any discounts to be allowed or commissions to be paid to any agent, dealer, initial purchaser or underwriter and any other terms of offering or sale of Securities of such series and to sell Securities of such series in accordance with any applicable purchase agreement or other agreement(s);

 

RESOLVED FURTHER, that, in connection with the issuance of any Securities of any series which may not be originally issued at one time (except as may be inconsistent with any action taken by any of the Authorized Officers, as herein provided, in connection with such series), and of the Authorized Officers may delegate any of its authority pursuant to these resolutions to any officer of the Company;

 

RESOLVED FURTHER, that, in connection with the issuance and sale of any Securities, that the Company may use the proceeds therefrom: (1) to fund the transactions contemplated by the Merger Agreement (including the redemption of outstanding indebtedness of Advanced) (2) to repay or refinance existing indebtedness of the Company or (3) for general corporate purposes as determined by the Authorized Officers, or any of them;

 

RESOLVED FURTHER, that, in connection with any such series of Securities, any of the Authorized Officers is authorized to approve any amendment, modification or supplement to the Company’s indentures and that any Authorized Officer be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such amendment, modification or supplement, substantially in the form approved by any Authorized Officer;

 

RESOLVED FURTHER, that the Company is authorized to (i) provide for the redemption or refinancing, in whole or in part, of the outstanding debt of Advanced in connection with the Merger, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or purchase, as applicable, and (ii) provide for the redemption or refinancing, in whole or in part, of the Specified Existing Notes, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or repurchase, as applicable (the actions in immediately preceding clauses (i) and (ii) being referred to as “Liability Management Transactions”), and the Authorized Officers and authorized employees be, and each of them hereby is, authorized in the name and on behalf of the Company, to prepare and execute such documents and agreements as may be necessary to effectuate such actions;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to determine any and all terms and conditions of the Liability Management Transactions as the Authorized Officers may deem necessary, advisable or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to consummate the Liability Management Transactions without further approval of the Board and to prepare and transmit one or more notices of redemption, offers to purchase and/or consent solicitation statements and any and all other documents in connection with the Liability Management Transactions to be transmitted to holders of the applicable securities;

 


 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and deliver such other agreements (including indemnity agreements), documents, certificates, orders, requests and instruments as may be contemplated by the Company’s indentures or required by the trustee thereunder, the security registrar or any other agent of the Company under such indentures in connection therewith or as may be necessary or appropriate in connection with the issuance and sale of Securities thereunder;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them hereby is, authorized, subject to and in accordance with the Company’s indentures and any action taken by any of the Authorized Officers in connection therewith, from time to time to appoint or designate on behalf of the Company one or more trustees, security registrars, paying agents and transfer agents for each series of Securities, to rescind on behalf of the Company any such appointment or designation and to approve on behalf of the Company any change in the location of any office through which any such trustee, security registrar, paying agent or transfer agent acts, and in connection therewith to take such action and to make, execute and deliver, or cause to be made, executed and delivered, such agreements, instruments and other documents as any such officer may deem necessary or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to such securities exchange or exchanges as the persons acting shall deem necessary or appropriate for the listing thereof of any of the Securities (including any Company Common Stock or preferred stock underlying any convertible Securities) and in connection therewith to appoint one or more listing agents and to prepare, or cause to be prepared, execute and file, or cause to be filed, an application or applications for such listing and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; that such officers or employees, or such other person as any such officer or employee may designate in writing, be, and each of them hereby is, authorized to appear before any official or officials or before any body of any such exchange, with authority to make such changes in such application, amendments, certificates, documents, letters and other instruments and to execute and deliver such agreements relative thereto, including, without limitation, listing agreements, fee agreements and indemnity agreements relating to the use of facsimile signatures as they, or any one of them, may deem necessary or appropriate in order to comply with the requirements of any such exchange or to effect such listing;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to the SEC for registration of any series of the Registered Securities under Section 12 or other applicable section of the Securities Exchange Act of 1934, and the Authorized Officers and authorized employees are hereby authorized to prepare or cause to be prepared, and to execute and file, or cause to be filed, with the SEC and any securities exchange an application or applications for such registration and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; and

 

RESOLVED FURTHER, that for purposes the resolutions in this Section 3, the term “Authorized Officers” shall be deemed to include, in addition to those officers identified above, the Chief Accounting Officer and the Treasurer of the Company and the term “authorized employees” shall mean either or both of the Vice President and General Counsel—Transactions and the Vice President and General Counsel—Securities & Governance of the Company.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

7.              Additional Actions.

 

NOW, THEREFORE, BE IT RESOLVED, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered, in accordance with the foregoing resolutions, in the name and on behalf of the Company, to prepare, execute and deliver any and

 


 

all agreements, amendments, certificates, reports, applications, notices, instruments, schedules, statements, consents, letters or other documents with respect to the matters contemplated by the foregoing resolutions, to certify as having been adopted by the Board any form of resolution required by any law, regulation or agency necessary or appropriate to effectuate the purpose and intent of these resolutions or any of them, to make any filings pursuant to federal, state and foreign laws, to pay all charges fees, taxes and other expenses and to do or cause to be done any and all such other acts and things as, in the opinion of any such Authorized Officer, may be necessary, appropriate or desirable in order to comply with the applicable laws and regulations of any jurisdiction (domestic or foreign), to issue press releases and engage in other communications, or otherwise in order to enable the Company to fully and promptly carry out the purposes and intent of the foregoing resolutions and to permit the matters contemplated thereby to be lawfully consummated;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered to retain, in the name and on behalf of the Company, such financial advisors, legal counsel and such other advisors, consultants or experts necessary or appropriate to carry out the actions contemplated in these resolutions, and to secure any appropriate advice and opinions from such advisors, consultants or experts, and to pay all fees and expenses incurred by the Company in connection with the transactions contemplated by the Merger Agreement and any actions or matters necessary or appropriate to give effect to the forgoing, including, but not limited to, all fees and expenses necessary or appropriate to effectuate the purpose and intent of the foregoing resolutions or any of them and the Merger Agreement and the transactions contemplated thereby and such other agreements and documents as may be executed by any Authorized Officer pursuant to authorization granted in these resolutions or to carry out the transactions contemplated thereby;

 

RESOLVED FURTHER, that each Authorized Officer may authorize any other officer, employee or agent of, or counsel to, the Company or any of its subsidiaries to take any and all actions and to execute and deliver any and all certificates, documents, agreements and instruments referred to in these resolutions in place of or on behalf of such Authorized Officer, with full power as if such Authorized Officer were taking such action himself or herself;

 

RESOLVED FURTHER, that the officers of the Company be, and each of them hereby is, authorized to take, or cause to be taken, any and all action which any such officer may deem necessary or desirable in order to carry out the purpose and intent of the foregoing resolutions or in order to perform, or cause to be performed, the obligations of the Company under the Securities, the New Registration Statement and any indenture, purchase agreement, or other agreement referred to herein, and, in connection therewith, to make, execute and deliver, or cause to be made, executed and delivered, all agreements, undertakings, documents, certificates, orders, requests or instruments in the name and on behalf of the Company as each such officer may deem necessary or appropriate; and

 

RESOLVED FURTHER, that any or all actions heretofore or hereafter taken by any officer or officers of the Company or any of its subsidiaries to effectuate or evidence the purpose and intent of the foregoing resolutions be, and hereby are, approved, ratified and confirmed as the act and deed of the Company or such subsidiary.

 


Exhibit 4.3

 

WASTE MANAGEMENT, INC.
Officers’ Certificate Delivered Pursuant to
Section 301 of the Indenture dated as of September 10, 1997

 

The undersigned, the Vice President and Treasurer, and the Vice President and Corporate Secretary of Waste Management, Inc. (the “Company”), hereby certify that:

 

1.                                      This Certificate is delivered to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), pursuant to Sections 102 and 301 of the Indenture dated as of September 10, 1997 between the Company, formerly known as USA Waste Services, Inc., and the Trustee in connection with the Company Order dated May 22, 2019 (the “Order”) for the authentication and delivery by the Trustee of $750,000,000 aggregate principal amount of 3.200% Senior Notes due 2026 (the “Notes”).

 

2.                                      The undersigned have read Sections 102, 103, 301 and 303 of the Indenture and the definitions in the Indenture relating thereto.

 

3.                                      The statements made herein are based either upon the personal knowledge of the persons making this Certificate or on information, data and reports furnished to such persons by the officers, counsel, department heads or employees of the Company who have knowledge of the facts involved.

 

4.                                      The undersigned have examined the Order, and they have read the covenants, conditions and provisions of the Indenture relating thereto.

 

5.                                      In the opinion of the persons making this Certificate, they have made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not all covenants and conditions provided for in the Indenture with respect to the Order have been complied with.

 

6.                                      All covenants and conditions (including all conditions precedent) provided in the Indenture to the authentication and delivery by the Trustee of $750,000,000 aggregate principal amount of the Notes have been complied with, and such Notes may be delivered in accordance with the Order as provided in the Indenture.

 

7.                                      The terms of the Notes (including the Form of Note) as set forth in Annex A to this Officers’ Certificate have been approved by officers of the Company as authorized by resolutions duly adopted on April 10, 2019 by the Board of Directors of the Company, copies of which are attached hereto as Annex B, are in full force and effect as of the date hereof.

 

[signature page follows]

 


 

IN WITNESS WHEREOF, the undersigned has hereunto executed this Officers’ Certificate as of the date first written above.

 

 

 

 

David L. Reed

 

Vice President and Treasurer

 

 

 

 

 

Courtney A. Tippy

 

Vice President and Corporate Secretary

 


 

Annex A

Terms of the Notes

 

Pursuant to authority granted by the Board of Directors of the Company on April 10, 2019 and the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019, the Company has approved the establishment, issuance, execution and delivery of a new series of Securities (as defined in the Indenture) to be issued under the Indenture dated as of September 10, 1997 (the “Indenture”), between the Company, formerly known as USA Waste Services, Inc., and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), the terms of which are set forth below. Capitalized terms used but not defined herein are used herein as defined in the Indenture.

 

(1)                                 The title of the series of Securities shall be “3.200% Senior Notes due 2026” (the “Notes”).

 

(2)                                 The Notes shall be general unsecured, senior obligations of the Company.

 

(3)                                 The initial aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture shall be $750,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 906 or 1107 of the Indenture); provided, however, that the authorized aggregate principal amount of such series may be increased before or after the issuance of any Notes of such series by a Board Resolution (or action pursuant to a Board Resolution) to such effect.

 

(4)                                 The principal amount of each Note shall be payable on June 15, 2026.

 

(5)                                 Each Note shall bear interest from May 22, 2019 at the fixed rate of 3.200% per annum; the Interest Payment Dates on which such interest shall be payable shall be June 15 and December 15, of each year, commencing December 15, 2019, until maturity unless such date falls on a day that is not a Business Day, in which case, such payment shall be made on the next day that is a Business Day. The Regular Record Date for the determination of Holders to whom interest is payable shall be June 1 or December 1, respectively, immediately preceding such date, as the case may be.

 

(6)                                 If a “Change of Control Triggering Event” (as defined in the Notes) occurs, each Holder of the Notes may require the Company to purchase all or a portion of such Holder’s Notes at a price equal to 101% of the principal amount, plus accrued interest, if any, to the date of purchase, on the terms and subject to the conditions set forth in the Notes.

 

(7)                                 The Notes are to be issued as Registered Securities only. Each Note is to be issued as a book-entry note (“Book-Entry Note”) but in certain circumstances may be represented by Notes in definitive form. The Book-Entry Notes shall be issued, in whole or in part, in the form of one or more Notes in global form as contemplated by Section 203 of the Indenture. The Depositary with respect to the Book-Entry Notes shall be The Depository Trust Company, New York, New York.

 


 

(8)                                 Payments of principal of, premium, if any, and interest due on the Notes representing Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(9)                                 Before the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the Redemption Date (as defined in the Notes) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 15 basis points; plus, in either case, accrued interest to the Redemption Date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the Redemption Date. “Par Call Date” means April 15, 2026.

 

(10)                          The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption (other than with respect to a Special Mandatory Redemption Event), sinking fund or analogous provisions or at the option of a Holder thereof.

 

(11)                          The Notes will be subject to defeasance and discharge as contemplated by Section 1302 of the Indenture and to covenant defeasance under Section 1303 of the Indenture.

 

(12)                          The Notes shall be entitled to the benefit of the covenants contained in Sections 1008 and 1009 of the Indenture.

 

(13)                          The Bank of New York Mellon Trust Company, N.A. shall serve initially as Security Registrar for the Notes.

 

(14)                          The Notes shall be substantially in the form of Exhibit A hereto.

 

(15)                          The Notes will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee Agreement dated May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Notes until release thereof as set forth in Section 6 of the Guarantee.

 

(16)                          If the Company does not consummate the Merger on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), then, in either case, the Company shall redeem all of the

 


 

Outstanding Notes at a Redemption Price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the Redemption Date, on the terms and subject to the conditions set forth in the Notes. “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

(17)                          The Notes shall be subject to the satisfaction and discharge provisions set forth in Section 401 of the Indenture, as such provisions are supplemented or modified by the terms and conditions set forth in the Notes in accordance with the Indenture.

 


 

BOOK-ENTRY SECURITY

 

THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

RGN

 

Principal Amount

 

 

 

 

WASTE MANAGEMENT, INC.

U.S. $                   ,
which may be decreased
by the Schedule of
Exchanges of Definitive
Security attached hereto

 

 

 

 

3.200% SENIOR NOTES DUE 2026

 

 

 

 

 

 

 CUSIP 94106L BH1

 

WASTE MANAGEMENT, INC., a Delaware corporation (the “Company,” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the office or agency of the Company, the principal sum of                 Million ($               ) U.S. dollars, or such lesser principal sum as is shown on the attached Schedule of Exchanges of Definitive Security, on June 15, 2026 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest at an annual rate of 3.200% payable on June 15 and December 15 of each year, to the person in whose name this Security is registered at the close of business on the record date for such interest, which shall be the preceding June 1 or

 


 

December 1, respectively, payable commencing December 15, 2019, with interest accruing from May 22, 2019, or the most recent date to which interest has been paid.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

The statements in the legends set forth above are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Securities of an initial aggregate of U.S. $750,000,000 in principal amount designated as the 3.200% Senior Notes due 2026 of the Company and is governed by the Indenture dated as of September 10, 1997, duly executed and delivered by the Company, formerly known as USA Waste Services, Inc., to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association) as trustee (the “Trustee”), as supplemented by Board Resolutions (as defined in the Indenture) (such Indenture and Board Resolutions, collectively, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.

 

If and to the extent that any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended, such required provision shall control.

 

The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in accordance with the terms of the Indenture without charge.

 


 

This Security shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated:

WASTE MANAGEMENT, INC., a Delaware corporation

 

 

 

By:

 

 

 

David L. Reed

 

 

Vice President and Treasurer

 

 

 

 

 

Attest:

 

 

 

By:

 

 

 

Courtney A. Tippy

 

 

Vice President and Corporate Secretary

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Date of Authentication:

The Bank of New York Mellon Trust Company, N.A., as Trustee

 

 

 

By:

 

 

 

Authorized Officer

 


 

REVERSE OF BOOK-ENTRY SECURITY

 

WASTE MANAGEMENT, INC.

 

3.200% SENIOR NOTES DUE 2026

 

This Security is one of a duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 3.200% Senior Notes due 2026 of the Company, in initial aggregate principal amount of $750,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Company promises to pay interest on the principal amount of this Security at the rate of 3.200% per annum.

 

The Company will pay interest semi-annually on June 15 and December 15 of each year (each an “Interest Payment Date”), commencing December 15, 2019. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from May 22, 2019. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the rate of 3.200% per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Company shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a Special Record Date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. Except as provided below, the Company shall pay principal and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts (“U.S. Legal Tender”). Payments in respect of a Book-Entry Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the

 


 

Depository. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Company maintained for such purpose within the Borough of Manhattan, the City of New York, which initially will be at the corporate trust office of The Bank of New York Mellon, located at 101 Barclay Street, Floor 21W, New York, New York, 10286 or at the option of the Company, payment of interest may be made by check mailed to the Holders on the Regular Record Date or on the Special Record Date at their addresses set forth in the Security Register of Holders.

 

3.                                      Paying Agent and Registrar.

 

Initially, The Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or co-Registrar at any time upon notice to the Trustee and the Holders. The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent, Registrar or co-Registrar.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Company issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Indenture and all indentures supplemental thereto, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture, and those terms stated in the Officers’ Certificate to the Trustee, duly authorized by resolutions of the Board of Directors of the Company on April 10, 2019 (the “Resolutions”) and the written consents of the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019 (the “Consents”). The Securities are subject to all such terms, and Holders of Securities are referred to the Indenture, all indentures supplemental thereto, said Act, said Resolutions and said Consents and Officers’ Certificate for a statement of them. The Securities of this series are general unsecured obligations of the Company limited with an initial aggregate principal amount of $750,000,000.

 

5.                                      Special Mandatory Redemption.

 

If the Merger is not completed on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), the Company shall redeem all of the Outstanding Securities in whole at a special mandatory Redemption Price (the “Special Mandatory Redemption Price”) equal to 101% of the aggregate principal amount of such Securities, plus accrued but unpaid interest on the principal amount of such Securities to, but not including, the Special Mandatory Redemption Date (as defined below).

 

Upon the occurrence of a Special Mandatory Redemption Event, the Company shall promptly (but in no event later than 5 Business Days following such Special Mandatory Redemption Event) notify the Trustee in writing of such event, and shall, no later than 5 Business Days following such notice to the Trustee, mail (or with respect to Securities in global form, to the extent permitted or required by applicable procedures or regulations of the Depository, send electronically) a notice of redemption to the registered address of each Holder of the Securities

 


 

(such date of notification to the Holders, the “Special Mandatory Redemption Notice Date”) fixing the date of such mandatory redemption, which date will be no earlier than 3 Business Days and no later than 30 days from the Special Mandatory Redemption Notice Date (such date, the “Special Mandatory Redemption Date”), in each case, in accordance with Section 106 of the Indenture. The Company shall notify each Holder in accordance with Section 106 of the Indenture that all of such Outstanding Securities shall be redeemed at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date automatically and without any further action by the Holders of such Securities. At or prior to 12:00 p.m. (New York City time) on the Business Day immediately preceding the Special Mandatory Redemption Date, the Company shall deposit with the Trustee funds sufficient to pay the Special Mandatory Redemption Price for such Securities. If such deposit is made as provided above, all of the Outstanding Securities will cease to bear interest on and after the Special Mandatory Redemption Date.

 

Upon the occurrence of the closing of the Merger, the foregoing provisions regarding the Special Mandatory Redemption Event will cease to apply.

 

For purposes of this Section 5, “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

6.                                      Optional Redemption.

 

Before the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price (the “Make-Whole Price”) equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest on the Securities that would be due if such Securities matured on the Par Call Date (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 15 basis points; plus, in either case, accrued interest to the Redemption Date.

 

On or after the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus accrued interest on the Securities to be redeemed to the Redemption Date.

 

Securities called for redemption become due on the Redemption Date. Notices of redemption will be mailed at least 10 but not more than 60 days before the Redemption Date to each holder of record of the Securities to be redeemed at its registered address. The notice of redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the Redemption Price or, if not ascertainable, the manner of determining the Make-Whole Price and the place(s) that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the Company defaults in payment of the Make-Whole Price, interest will cease to accrue on any Securities that have been called for redemption at the Redemption Date. If less than all the Securities are redeemed at any time, the Trustee will

 


 

select the Securities to be redeemed on a pro rata basis or by any other method the Trustee deems fair and appropriate (or with respect to Securities in global form, by such method as the Depository may require).

 

For purposes of determining the Make-Whole Price, the following definitions are applicable:

 

“Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities, calculated as if the maturity date of such Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Securities.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by us to act as the Independent Investment Banker from time to time.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means April 15, 2026.

 

“Reference Treasury Dealer” means (i) each of Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities, an average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

Except as set forth in Section 5 and in this Section 6, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 


 

The Securities may be redeemed in part in a minimum principal amount of $2,000, or any integral multiple of $1,000 in excess thereof.

 

Any such redemption will also comply with Article Eleven of the Indenture.

 

7.                                      Change of Control Offer.

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Securities as described in Section 6, or a Special Mandatory Redemption Event has occurred prior to such date as described in Section 5, the Company shall make an offer (a “Change of Control Offer”) to each Holder of the Securities to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of Securities repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Securities repurchased to the date of repurchase, subject to the right of holders of record on the applicable record date to receive interest due on the next Interest Payment Date.

 

Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders of the Securities describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the applicable notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

 

Upon the Change of Control Payment Date, the Company shall, to the extent lawful:

 

·                                          accept for payment all Securities or portions of Securities properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

·                                          deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

 

·                                          deliver or cause to be delivered to the Trustee the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of Securities being repurchased.

 

The Company need not make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities if there has occurred and is continuing on the

 


 

Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

 

The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Offer provisions of this Security, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of this Security by virtue of any such conflict.

 

For purposes of the Change of Control Offer provisions of the Securities, the following terms are applicable:

 

“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Company or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Voting Stock of the Company outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person, measured by voting power rather than number of shares, immediately after giving effect to such transaction; or (4) the adoption of a plan relating to the liquidation or dissolution of the Company.

 

Notwithstanding the preceding, a transaction will not be deemed to involve a Change of Control under clause (2) above if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of Voting Stock of the Company immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. The term ‘‘person,’’ as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 


 

“Fitch” means Fitch Inc. and its successors.

 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P and (2) if any of Fitch, Moody’s or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a ‘‘nationally recognized statistical rating organization’’ within the meaning of Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of our Board of Directors) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

“Rating Event” means the rating on the Securities is lowered by at least two of the three Rating Agencies and the Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies, in any case on any day during the period (which period will be extended so long as the rating of the Securities is under publicly announced consideration for a possible downgrade by any of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control.

 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

“Voting Stock” means, with respect to any specified ‘‘person’’ (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

8.                                      Denominations; Transfer; Exchange.

 

The Securities are issued in registered form, without coupons, in a minimum denomination of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Securities Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

9.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

10.                               Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the Outstanding Debt Securities of each series affected. Without consent of any Holder, the parties thereto may amend or supplement the

 


 

Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency, or make any other change that does not adversely affect the interests of any Holder of a Security in any material respect. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

11.                               Defaults and Remedies.

 

If an Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Securities then Outstanding may declare the principal amount of all the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made and before judgment or decree for payment of the money due has been obtained by the Trustee as provided in the Indenture, the Holders of a majority in principal amount of the Outstanding Securities, by written notice to the Company and to the Trustee, may rescind and annul such declaration and its consequences if (1) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all Securities, (B) the principal of (and premium, if any, on) any Securities which has become due otherwise than by such declaration of acceleration and any interest thereon at the rate prescribed therefor herein, (C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate prescribed therefor herein, and (D) all sums paid or advanced by the Trustee and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and (2) all Events of Default under the Indenture with respect to the Securities, other than the nonpayment of the principal of Securities which has become due solely by such declaration acceleration, shall have been cured or shall have been waived. No such rescission shall affect any subsequent Event of Default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

12.                               Trustee Dealings with Company.

 

The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company and its Affiliates and any subsidiary of the Company’s Affiliates, and may otherwise deal with the Company and its Affiliates as if it were not the Trustee.

 

13.                               Authentication.

 

This Security shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on the other side of this Security.

 


 

14.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

15.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

16.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

17.                               No Recourse.

 

No recourse under or upon any obligation, covenant or agreement contained in the Indenture or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, past, present or future stockholder, officer or director, as such of the Company or of any successor, either directly or through the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Security by the Holder and as part of the consideration for the issue of the Security.

 

18.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

19.                               Guarantee.

 

The Securities will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee, dated as of May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Securities until release thereof as set forth in Section 6 of the Guarantee.

 


 

20.                              Satisfaction and Discharge.

 

The Securities will be subject to Section 401 of the Indenture; provided, however, that solely with respect to the Securities, the following sentence shall be added to the end of Section 401(1)(B) of the Indenture: “(provided that, upon any redemption that requires the payment of any make-whole or other premium, (x) the amount of cash that must be deposited shall be determined using an assumed applicable premium calculated as of the date of such deposit and (y) the Company shall deposit any deficit in trust on or prior to the Redemption Date as necessary to pay the applicable premium as determined by such date)”.

 


 

SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY

 

The following exchanges of a part of this Book-Entry Security for definitive Securities have been made:

 

Date of Exchange

 

Amount of
decrease in
Principal Amount
of this Book-Entry
Security

 

Amount of increase
in Principal
Amount of this
Book-Entry
Security

 

Principal Amount
of this Book-Entry
Security following
such decrease (or
increase)

 

Signature of
authorized officer
of Trustee or
Security Custodian

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Annex B

Resolutions of the Board of Directors

of Waste Management, Inc.

 

WHEREAS, there has been considered by the Board a draft of an Agreement and Plan of Merger, a summary of the principal terms of which has been previously provided to the Board, (the “Merger Agreement”) by and among the Company, Everglades Merger Sub Inc., a Delaware corporation and wholly-owned indirect subsidiary of the Company (“Merger Sub”) and Advanced Disposal Services, Inc., a Delaware corporation (“Advanced”), whereby, among other things, subject to the terms and conditions contained in, and as more fully described in, the Merger Agreement, Merger Sub will merge with and into Advanced (the “Merger”), with Advanced surviving the Merger as a wholly-owned indirect subsidiary of the Company (capitalized terms used but not defined herein shall have the meaning given such terms in the Merger Agreement);

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

WHEREAS, the Board resolved in August 2018 to authorize the Company to prepare and file a new registration statement with the Securities and Exchange Commission (the “SEC”) and to offer in one or more offerings an aggregate of $3,000,000,000 of securities without further action by the Board (the “August 2018 Authorization”);

 

WHEREAS, the Board desires to amend and restate the August 2018 Authorization to, among other things, provide for additional offerings of securities to finance the Merger Consideration;

 

WHEREAS, the Board desires to provide for potential offerings of debt securities denominated in Canadian dollars by the Company and/or its subsidiaries;

 

WHEREAS, the Company is party to that certain indenture, dated as of September 10, 1997 (as amended, restated or otherwise modified from time to time, the “Company Existing Indenture”), by and among the Company, The Bank of New York Mellon Trust Company, N.A., as successor trustee to Texas Commerce Bank National Association, and pursuant to the Company Existing Indenture, has issued, among other securities: (i) the Company’s 7.00% Senior Notes due 2028 (the “2028 Notes”), (ii) the Company’s 7.375% Senior Notes due 2029 (the “2029 Notes”), (iii) the Company’s 7.75% Senior Notes due 2032 (the “2032 Notes”), and (iv) the Company’s 6.125% Senior Notes due 2039 (the “2039 Notes”);

 

WHEREAS Waste Management Holdings, Inc., a wholly-owned subsidiary of the Company (“WMHI”), is a party to that certain indenture, dated as of June 1, 1993, by and among WMHI, and The Fuji Bank and Trust Company, as trustee (as amended, restated or otherwise modified from time to time, the “WMHI Existing Indenture”), and has issued, pursuant to the WMHI Existing Indenture, its 7.10% Senior Notes due 2026 (the “2026 Notes,” and together with the 2028 Notes, the 2029 Notes, the 2032 Notes and the 2039 Notes, the “Specified Existing Notes”); and

 

WHEREAS the Board desires to provide for the eventual redemption and/or refinancing of the Specified Existing Notes and deems it advisable to approve the Company’ pursuit of tender offers and/or redemption transactions with respect to the Specified Existing Notes.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

3.              Registration Statement; Securities Offerings.

 

NOW, THEREFORE, BE IT RESOLVED, that the Company is hereby authorized to prepare and file with the SEC a shelf registration statement on Form S-3 (the “New Registration Statement”), pursuant to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), which New Registration Statement is anticipated to be filed with the SEC after the Company’s earnings announcement for the three months ended March 31, 2019 and may provide for the

 


 

registration of, among other things, unsecured senior or subordinated debentures, notes or other evidences of indebtedness of the Company (collectively “Registered Debt Securities”); common stock of the Company, par value $0.01 (“Company Common Stock”); warrants to purchase shares of Company Common Stock; shares of preferred stock in such series with such designations, powers, preferences and relative and other special rights and qualifications, limitations and restrictions as the Board of Directors may from time to time authorize; guarantees of securities by WMHI; and any units consisting of one or more of the foregoing (the Registered Debt Securities, Company Common Stock, warrants, preferred stock, guarantees and units eligible to be sold pursuant to the New Registration Statement are collectively referred to herein as the “Registered Securities”), to be issued from time to time;

 

RESOLVED FURTHER, that each of the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to issue, offer and sell an aggregate of up to $6,000,000,000 of Securities (as defined below) without further approval of the Board of Directors pursuant to the New Registration Statement or a Canadian Offering (as defined below), as applicable;

 

RESOLVED FURTHER, that authority to make new issuances of Registered Securities pursuant to the August 2018 Authorization shall be deemed rescinded and superseded hereby;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees (as established pursuant to these resolutions) be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and cause to be filed with the SEC any and all amendments (including, without limitation, post-effective amendments) or supplements to the New Registration Statement and any prospectus included therein and any additional documents which such officer or employee may deem necessary or desirable with respect to the registration and offering of the Registered Securities, and such amendments, supplements, registration statements and documents to be in such form as the officer or employee executing the same may approve, as conclusively evidenced by his execution thereof;

 

RESOLVED FURTHER, that the Chief Legal Officer of the Company be, and he hereby is, designated and appointed the agent for service of process on the Company under the Securities Act in connection with the New Registration Statement and any and all amendments and supplements thereto, with all powers incident to such appointment;

 

RESOLVED FURTHER, that any of the Authorized Officers be, and each of them hereby is, authorized, at any time and from time to time, on behalf of the Company, (i) to determine, subject to the limits that shall be set by the Board, the number of shares of Company Common Stock, preferred stock or other equity securities to be offered and sold by the Company pursuant to the New Registration Statement, including any shares underlying warrants or convertible Debt Securities, (ii) to authorize the reserve and issuance of such shares and (iii) to take any and all action and to do or cause to be done any and all things which may appear to any of the Authorized Officers to be necessary or advisable in order to authorize, offer, issue, and sell such shares of Company Common Stock, pursuant to the New Registration Statement and the applicable purchase agreement, which action could be taken or which things could be done by the Board;

 

RESOLVED FURTHER, that the Company is authorized to offer, issue and sell, or cause any subsidiary of the Company to offer, issue and sell, debt securities denominated in Canadian dollars (the “Canadian Notes,” together with any Canadian Notes Guarantees (as defined below) the “Canadian Securities,” and together with the Registered Securities, the “Securities”) in transactions exempt from registration under the Securities Act, on terms and conditions to be determined by the Authorized Officers from time to time (the “Canadian Offering”);

 

RESOLVED FURTHER, that the Authorized Officers, and each of them, shall have full authority to authorize and approve the terms of the Canadian Offering (including, without limitation, the aggregate amount to be sold, the initial offering price, the prices at which such Canadian Securities will be sold to the applicable Initial Purchasers (as defined below) and such other terms as may be necessary) and the final terms of the purchase agreement relating to the Canadian Offering (the “Purchase Agreement”),

 


 

any guarantors of such Canadian Notes (collectively, the “Canadian Notes Guarantors”) and the initial purchasers in connection with the Canadian Offering (the “Initial Purchasers”) and such other matters as the Authorized Officers, or any of them, shall determine to be necessary or advisable in connection with the issuance of the Canadian Securities and to carry out the purposes and intent of the foregoing resolutions;

 

RESOLVED FURTHER, that the Company is authorized to cause the Canadian Notes to be guaranteed on a senior secured basis (the “Canadian Notes Guarantees”) by the Canadian Notes Guarantors if advisable in the judgment of any of the Authorized Officers;

 

RESOLVED FURTHER, that the preparation and use of a preliminary offering memorandum relating to the Canadian Offering (the “Preliminary Offering Memorandum”) is hereby ratified, confirmed, authorized and approved, and that the Authorized Officers or any of them acting together or individually, and those other employees of the Company as any of them shall designate, are hereby authorized and directed in the name and on behalf of the Company to prepare a pricing supplement (the “Pricing Supplement”) in connection with the Canadian Offering, and the final offering memorandum (the “Final Offering Memorandum”) relating to the Canadian Offering, and any supplements or amendments thereto as any of the Authorized Officers deems necessary or appropriate in connection with the Canadian Offering, such approval to be conclusively evidenced by the distribution of such supplement or amendment by or on behalf of the Company to the Initial Purchasers;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be and hereby are authorized and directed in the name and on behalf of the Company to take any and all action which they may deem necessary or advisable in order to effect the registration or qualification of all or part of the Registered Securities to be registered under the Securities Act, and any and all action for the Securities to be eligible for offer and sale under the securities or Blue Sky laws of the states of the United States of America or similar laws and regulations of other jurisdictions, including Canada, and in connection therewith, to execute, acknowledge, verify, deliver, file and publish all such applications, reports, issuer’s covenants, resolutions, consents to service of process, or appointments of governmental officials for the purpose of receiving and accepting service of process on the laws, and to take any and all further action which they may deem necessary or advisable in order to maintain any such registration or qualification for as long as they deem the same to be in the best interest of the Company;

 

RESOLVED FURTHER, that the form of any additional resolutions required in connection with the appropriate qualification or registration of the Securities for offer and sale under such securities or Blue Sky laws, be and hereby is approved and adopted, provided the appropriate officers of the Company, on the advice of counsel, consider the adoption thereof necessary or advisable, in which case the Secretary or any Assistant Secretary of the Company is hereby directed to insert as an appendix hereto a copy of such resolutions, which shall thereupon be deemed to have been adopted by this Board of Directors with the same force and effect as if set out verbatim herein;

 

RESOLVED FURTHER, that any of the Authorized Officers or authorized employees be, and each of them hereby is, authorized to approve at any time and from time to time, the engagement of one or more investment banks to provide services in connection with any offering of Securities, one or more forms of underwriting or purchase agreement (and any related terms agreement) and agency agreement (and related purchase agreement) and any other agreement or agreements any of such persons may deem necessary or appropriate in connection with the arrangements for the purchase of any of the Securities, and that such persons be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such agreement or agreements in substantially the form approved by any of them, with such changes therein as the person executing the same may approve, as conclusively evidenced by the execution and delivery thereof, it being understood that, in the case of any terms agreement or purchase agreement referred to above, it shall not be necessary for any of the Authorized Officers to approve any individual agreement pursuant to which Securities are to be sold if the form thereof has previously been approved as provided in this resolution;

 

RESOLVED FURTHER, that any of the Authorized Officers may, at any time and from time to time, on behalf of the Company, authorize the issuance of one or more series of Securities under one or

 


 

more indentures, within any limits that may be set by the Board, and in connection therewith establish, or, if all of the Securities of such series may not be originally issued at one time, to the extent deemed appropriate, prescribe the manner of determining, within any limitations established by any of the Authorized Officers and subject in either case to the limitations set forth in these resolutions, all of the terms of such Securities;

 

RESOLVED FURTHER, that, in connection with any such series of Securities (but without limiting the authority hereinafter in these resolutions conferred with respect to the issuance of Securities of a series which may not all be originally issued at one time), any of the Authorized Officers is authorized at any time or from time to time to determine the price or prices to be received by the Company in any offering or sale of Securities of such series, any public offering price or prices thereof, any discounts to be allowed or commissions to be paid to any agent, dealer, initial purchaser or underwriter and any other terms of offering or sale of Securities of such series and to sell Securities of such series in accordance with any applicable purchase agreement or other agreement(s);

 

RESOLVED FURTHER, that, in connection with the issuance of any Securities of any series which may not be originally issued at one time (except as may be inconsistent with any action taken by any of the Authorized Officers, as herein provided, in connection with such series), and of the Authorized Officers may delegate any of its authority pursuant to these resolutions to any officer of the Company;

 

RESOLVED FURTHER, that, in connection with the issuance and sale of any Securities, that the Company may use the proceeds therefrom: (1) to fund the transactions contemplated by the Merger Agreement (including the redemption of outstanding indebtedness of Advanced) (2) to repay or refinance existing indebtedness of the Company or (3) for general corporate purposes as determined by the Authorized Officers, or any of them;

 

RESOLVED FURTHER, that, in connection with any such series of Securities, any of the Authorized Officers is authorized to approve any amendment, modification or supplement to the Company’s indentures and that any Authorized Officer be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such amendment, modification or supplement, substantially in the form approved by any Authorized Officer;

 

RESOLVED FURTHER, that the Company is authorized to (i) provide for the redemption or refinancing, in whole or in part, of the outstanding debt of Advanced in connection with the Merger, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or purchase, as applicable, and (ii) provide for the redemption or refinancing, in whole or in part, of the Specified Existing Notes, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or repurchase, as applicable (the actions in immediately preceding clauses (i) and (ii) being referred to as “Liability Management Transactions”), and the Authorized Officers and authorized employees be, and each of them hereby is, authorized in the name and on behalf of the Company, to prepare and execute such documents and agreements as may be necessary to effectuate such actions;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to determine any and all terms and conditions of the Liability Management Transactions as the Authorized Officers may deem necessary, advisable or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to consummate the Liability Management Transactions without further approval of the Board and to prepare and transmit one or more notices of redemption, offers to purchase and/or consent solicitation statements and any and all other documents in connection with the Liability Management Transactions to be transmitted to holders of the applicable securities;

 


 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and deliver such other agreements (including indemnity agreements), documents, certificates, orders, requests and instruments as may be contemplated by the Company’s indentures or required by the trustee thereunder, the security registrar or any other agent of the Company under such indentures in connection therewith or as may be necessary or appropriate in connection with the issuance and sale of Securities thereunder;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them hereby is, authorized, subject to and in accordance with the Company’s indentures and any action taken by any of the Authorized Officers in connection therewith, from time to time to appoint or designate on behalf of the Company one or more trustees, security registrars, paying agents and transfer agents for each series of Securities, to rescind on behalf of the Company any such appointment or designation and to approve on behalf of the Company any change in the location of any office through which any such trustee, security registrar, paying agent or transfer agent acts, and in connection therewith to take such action and to make, execute and deliver, or cause to be made, executed and delivered, such agreements, instruments and other documents as any such officer may deem necessary or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to such securities exchange or exchanges as the persons acting shall deem necessary or appropriate for the listing thereof of any of the Securities (including any Company Common Stock or preferred stock underlying any convertible Securities) and in connection therewith to appoint one or more listing agents and to prepare, or cause to be prepared, execute and file, or cause to be filed, an application or applications for such listing and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; that such officers or employees, or such other person as any such officer or employee may designate in writing, be, and each of them hereby is, authorized to appear before any official or officials or before any body of any such exchange, with authority to make such changes in such application, amendments, certificates, documents, letters and other instruments and to execute and deliver such agreements relative thereto, including, without limitation, listing agreements, fee agreements and indemnity agreements relating to the use of facsimile signatures as they, or any one of them, may deem necessary or appropriate in order to comply with the requirements of any such exchange or to effect such listing;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to the SEC for registration of any series of the Registered Securities under Section 12 or other applicable section of the Securities Exchange Act of 1934, and the Authorized Officers and authorized employees are hereby authorized to prepare or cause to be prepared, and to execute and file, or cause to be filed, with the SEC and any securities exchange an application or applications for such registration and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; and

 

RESOLVED FURTHER, that for purposes the resolutions in this Section 3, the term “Authorized Officers” shall be deemed to include, in addition to those officers identified above, the Chief Accounting Officer and the Treasurer of the Company and the term “authorized employees” shall mean either or both of the Vice President and General Counsel—Transactions and the Vice President and General Counsel—Securities & Governance of the Company.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

7.              Additional Actions.

 

NOW, THEREFORE, BE IT RESOLVED, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered, in accordance with the foregoing resolutions, in the name and on behalf of the Company, to prepare, execute and deliver any and

 


 

all agreements, amendments, certificates, reports, applications, notices, instruments, schedules, statements, consents, letters or other documents with respect to the matters contemplated by the foregoing resolutions, to certify as having been adopted by the Board any form of resolution required by any law, regulation or agency necessary or appropriate to effectuate the purpose and intent of these resolutions or any of them, to make any filings pursuant to federal, state and foreign laws, to pay all charges fees, taxes and other expenses and to do or cause to be done any and all such other acts and things as, in the opinion of any such Authorized Officer, may be necessary, appropriate or desirable in order to comply with the applicable laws and regulations of any jurisdiction (domestic or foreign), to issue press releases and engage in other communications, or otherwise in order to enable the Company to fully and promptly carry out the purposes and intent of the foregoing resolutions and to permit the matters contemplated thereby to be lawfully consummated;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered to retain, in the name and on behalf of the Company, such financial advisors, legal counsel and such other advisors, consultants or experts necessary or appropriate to carry out the actions contemplated in these resolutions, and to secure any appropriate advice and opinions from such advisors, consultants or experts, and to pay all fees and expenses incurred by the Company in connection with the transactions contemplated by the Merger Agreement and any actions or matters necessary or appropriate to give effect to the forgoing, including, but not limited to, all fees and expenses necessary or appropriate to effectuate the purpose and intent of the foregoing resolutions or any of them and the Merger Agreement and the transactions contemplated thereby and such other agreements and documents as may be executed by any Authorized Officer pursuant to authorization granted in these resolutions or to carry out the transactions contemplated thereby;

 

RESOLVED FURTHER, that each Authorized Officer may authorize any other officer, employee or agent of, or counsel to, the Company or any of its subsidiaries to take any and all actions and to execute and deliver any and all certificates, documents, agreements and instruments referred to in these resolutions in place of or on behalf of such Authorized Officer, with full power as if such Authorized Officer were taking such action himself or herself;

 

RESOLVED FURTHER, that the officers of the Company be, and each of them hereby is, authorized to take, or cause to be taken, any and all action which any such officer may deem necessary or desirable in order to carry out the purpose and intent of the foregoing resolutions or in order to perform, or cause to be performed, the obligations of the Company under the Securities, the New Registration Statement and any indenture, purchase agreement, or other agreement referred to herein, and, in connection therewith, to make, execute and deliver, or cause to be made, executed and delivered, all agreements, undertakings, documents, certificates, orders, requests or instruments in the name and on behalf of the Company as each such officer may deem necessary or appropriate; and

 

RESOLVED FURTHER, that any or all actions heretofore or hereafter taken by any officer or officers of the Company or any of its subsidiaries to effectuate or evidence the purpose and intent of the foregoing resolutions be, and hereby are, approved, ratified and confirmed as the act and deed of the Company or such subsidiary.

 


Exhibit 4.4

 

WASTE MANAGEMENT, INC.
Officers’ Certificate Delivered Pursuant to
Section 301 of the Indenture dated as of September 10, 1997

 

The undersigned, the Vice President and Treasurer, and the Vice President and Corporate Secretary of Waste Management, Inc. (the “Company”), hereby certify that:

 

1.                                      This Certificate is delivered to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), pursuant to Sections 102 and 301 of the Indenture dated as of September 10, 1997 between the Company, formerly known as USA Waste Services, Inc., and the Trustee in connection with the Company Order dated May 22, 2019 (the “Order”) for the authentication and delivery by the Trustee of $1,000,000,000 aggregate principal amount of 3.450% Senior Notes due 2029 (the “Notes”).

 

2.                                      The undersigned have read Sections 102, 103, 301 and 303 of the Indenture and the definitions in the Indenture relating thereto.

 

3.                                      The statements made herein are based either upon the personal knowledge of the persons making this Certificate or on information, data and reports furnished to such persons by the officers, counsel, department heads or employees of the Company who have knowledge of the facts involved.

 

4.                                      The undersigned have examined the Order, and they have read the covenants, conditions and provisions of the Indenture relating thereto.

 

5.                                      In the opinion of the persons making this Certificate, they have made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not all covenants and conditions provided for in the Indenture with respect to the Order have been complied with.

 

6.                                      All covenants and conditions (including all conditions precedent) provided in the Indenture to the authentication and delivery by the Trustee of $1,000,000,000 aggregate principal amount of the Notes have been complied with, and such Notes may be delivered in accordance with the Order as provided in the Indenture.

 

7.                                      The terms of the Notes (including the Form of Note) as set forth in Annex A to this Officers’ Certificate have been approved by officers of the Company as authorized by resolutions duly adopted on April 10, 2019 by the Board of Directors of the Company, copies of which are attached hereto as Annex B, are in full force and effect as of the date hereof.

 

[signature page follows]

 


 

IN WITNESS WHEREOF, the undersigned has hereunto executed this Officers’ Certificate as of the date first written above.

 

 

 

 

David L. Reed

 

Vice President and Treasurer

 

 

 

 

 

Courtney A. Tippy

 

Vice President and Corporate Secretary

 


 

Annex A

Terms of the Notes

 

Pursuant to authority granted by the Board of Directors of the Company on April 10, 2019 and the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019, the Company has approved the establishment, issuance, execution and delivery of a new series of Securities (as defined in the Indenture) to be issued under the Indenture dated as of September 10, 1997 (the “Indenture”), between the Company, formerly known as USA Waste Services, Inc., and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), the terms of which are set forth below. Capitalized terms used but not defined herein are used herein as defined in the Indenture.

 

(1)                                 The title of the series of Securities shall be “3.450% Senior Notes due 2029” (the “Notes”).

 

(2)                                 The Notes shall be general unsecured, senior obligations of the Company.

 

(3)                                 The initial aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture shall be $1,000,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 906 or 1107 of the Indenture); provided, however, that the authorized aggregate principal amount of such series may be increased before or after the issuance of any Notes of such series by a Board Resolution (or action pursuant to a Board Resolution) to such effect.

 

(4)                                 The principal amount of each Note shall be payable on June 15, 2029.

 

(5)                                 Each Note shall bear interest from May 22, 2019 at the fixed rate of 3.450% per annum; the Interest Payment Dates on which such interest shall be payable shall be June 15 and December 15, of each year, commencing December 15, 2019, until maturity unless such date falls on a day that is not a Business Day, in which case, such payment shall be made on the next day that is a Business Day. The Regular Record Date for the determination of Holders to whom interest is payable shall be June 1 or December 1, respectively, immediately preceding such date, as the case may be.

 

(6)                                 If a “Change of Control Triggering Event” (as defined in the Notes) occurs, each Holder of the Notes may require the Company to purchase all or a portion of such Holder’s Notes at a price equal to 101% of the principal amount, plus accrued interest, if any, to the date of purchase, on the terms and subject to the conditions set forth in the Notes.

 

(7)                                 The Notes are to be issued as Registered Securities only. Each Note is to be issued as a book-entry note (“Book-Entry Note”) but in certain circumstances may be represented by Notes in definitive form. The Book-Entry Notes shall be issued, in whole or in part, in the form of one or more Notes in global form as contemplated by Section 203 of the Indenture. The Depositary with respect to the Book-Entry Notes shall be The Depository Trust Company, New York, New York.

 


 

(8)                                 Payments of principal of, premium, if any, and interest due on the Notes representing Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(9)                                 Before the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the Redemption Date (as defined in the Notes) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 20 basis points; plus, in either case, accrued interest to the Redemption Date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the Redemption Date. “Par Call Date” means March 15, 2029.

 

(10)                          The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption (other than with respect to a Special Mandatory Redemption Event), sinking fund or analogous provisions or at the option of a Holder thereof.

 

(11)                          The Notes will be subject to defeasance and discharge as contemplated by Section 1302 of the Indenture and to covenant defeasance under Section 1303 of the Indenture.

 

(12)                          The Notes shall be entitled to the benefit of the covenants contained in Sections 1008 and 1009 of the Indenture.

 

(13)                          The Bank of New York Mellon Trust Company, N.A. shall serve initially as Security Registrar for the Notes.

 

(14)                          The Notes shall be substantially in the form of Exhibit A hereto.

 

(15)                          The Notes will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee Agreement dated May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Notes until release thereof as set forth in Section 6 of the Guarantee.

 


 

(16)                          If the Company does not consummate the Merger on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), then, in either case, the Company shall redeem all of the Outstanding Notes at a Redemption Price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the Redemption Date, on the terms and subject to the conditions set forth in the Notes. “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

(17)                          The Notes shall be subject to the satisfaction and discharge provisions set forth in Section 401 of the Indenture, as such provisions are supplemented or modified by the terms and conditions set forth in the Notes in accordance with the Indenture.

 


 

BOOK-ENTRY SECURITY

 

THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

RGN

 

Principal Amount

 

 

 

 

WASTE MANAGEMENT, INC.

U.S. $                   ,

which may be decreased
by the Schedule of
Exchanges of Definitive
Security attached hereto

 

 

 

 

3.450% SENIOR NOTES DUE 2029

 

 

 

CUSIP 94106L BG3

 

WASTE MANAGEMENT, INC., a Delaware corporation (the “Company,” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the office or agency of the Company, the principal sum of                 Million ($               ) U.S. dollars, or such lesser principal sum as is shown on the attached Schedule of Exchanges of Definitive Security, on June 15, 2029 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest at an annual rate of 3.450% payable on June 15 and December 15 of each year, to the person in whose name this Security is registered at the close of business on the record date for such interest, which shall be the preceding June 1 or

 


 

December 1, respectively, payable commencing December 15, 2019, with interest accruing from May 22, 2019, or the most recent date to which interest has been paid.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

The statements in the legends set forth above are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Securities of an initial aggregate of U.S. $1,000,000,000 in principal amount designated as the 3.450% Senior Notes due 2029 of the Company and is governed by the Indenture dated as of September 10, 1997, duly executed and delivered by the Company, formerly known as USA Waste Services, Inc., to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association) as trustee (the “Trustee”), as supplemented by Board Resolutions (as defined in the Indenture) (such Indenture and Board Resolutions, collectively, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.

 

If and to the extent that any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended, such required provision shall control.

 

The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in accordance with the terms of the Indenture without charge.

 


 

This Security shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated:

WASTE MANAGEMENT, INC.,

a Delaware corporation

 

 

 

By:

 

 

 

David L. Reed

 

 

Vice President and Treasurer

 

 

 

Attest:

 

 

 

By:

 

 

 

Courtney A. Tippy

 

 

Vice President and Corporate Secretary

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Date of Authentication:

The Bank of New York Mellon Trust Company, N.A., as Trustee

 

 

 

 

 

By:

 

 

 

Authorized Officer

 


 

REVERSE OF BOOK-ENTRY SECURITY

 

WASTE MANAGEMENT, INC.

 

3.450% SENIOR NOTES DUE 2029

 

This Security is one of a duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 3.450% Senior Notes due 2029 of the Company, in initial aggregate principal amount of $1,000,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Company promises to pay interest on the principal amount of this Security at the rate of 3.450% per annum.

 

The Company will pay interest semi-annually on June 15 and December 15 of each year (each an “Interest Payment Date”), commencing December 15, 2019. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from May 22, 2019. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the rate of 3.450% per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Company shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a Special Record Date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. Except as provided below, the Company shall pay principal and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts (“U.S. Legal Tender”). Payments in respect of a Book-Entry Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the

 


 

Depository. Payments in respect of Securities in definitive form (including principal, premium, if any, and interest) will be made at the office or agency of the Company maintained for such purpose within the Borough of Manhattan, the City of New York, which initially will be at the corporate trust office of The Bank of New York Mellon, located at 101 Barclay Street, Floor 21W, New York, New York, 10286 or at the option of the Company, payment of interest may be made by check mailed to the Holders on the Regular Record Date or on the Special Record Date at their addresses set forth in the Security Register of Holders.

 

3.                                      Paying Agent and Registrar.

 

Initially, The Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or co-Registrar at any time upon notice to the Trustee and the Holders. The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent, Registrar or co-Registrar.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Company issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Indenture and all indentures supplemental thereto, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture, and those terms stated in the Officers’ Certificate to the Trustee, duly authorized by resolutions of the Board of Directors of the Company on April 10, 2019 (the “Resolutions”) and the written consents of the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019 (the “Consents”). The Securities are subject to all such terms, and Holders of Securities are referred to the Indenture, all indentures supplemental thereto, said Act, said Resolutions and said Consents and Officers’ Certificate for a statement of them. The Securities of this series are general unsecured obligations of the Company limited with an initial aggregate principal amount of $1,000,000,000.

 

5.                                      Special Mandatory Redemption.

 

If the Merger is not completed on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), the Company shall redeem all of the Outstanding Securities in whole at a special mandatory Redemption Price (the “Special Mandatory Redemption Price”) equal to 101% of the aggregate principal amount of such Securities, plus accrued but unpaid interest on the principal amount of such Securities to, but not including, the Special Mandatory Redemption Date (as defined below).

 

Upon the occurrence of a Special Mandatory Redemption Event, the Company shall promptly (but in no event later than 5 Business Days following such Special Mandatory Redemption Event) notify the Trustee in writing of such event, and shall, no later than 5 Business Days following such notice to the Trustee, mail (or with respect to Securities in global form, to the extent permitted or required by applicable procedures or regulations of the Depository, send electronically) a notice of redemption to the registered address of each Holder of the Securities

 


 

(such date of notification to the Holders, the “Special Mandatory Redemption Notice Date”) fixing the date of such mandatory redemption, which date will be no earlier than 3 Business Days and no later than 30 days from the Special Mandatory Redemption Notice Date (such date, the “Special Mandatory Redemption Date”), in each case, in accordance with Section 106 of the Indenture. The Company shall notify each Holder in accordance with Section 106 of the Indenture that all of such Outstanding Securities shall be redeemed at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date automatically and without any further action by the Holders of such Securities. At or prior to 12:00 p.m. (New York City time) on the Business Day immediately preceding the Special Mandatory Redemption Date, the Company shall deposit with the Trustee funds sufficient to pay the Special Mandatory Redemption Price for such Securities. If such deposit is made as provided above, all of the Outstanding Securities will cease to bear interest on and after the Special Mandatory Redemption Date.

 

Upon the occurrence of the closing of the Merger, the foregoing provisions regarding the Special Mandatory Redemption Event will cease to apply.

 

For purposes of this Section 5, “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

6.                                      Optional Redemption.

 

Before the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price (the “Make-Whole Price”) equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest on the Securities that would be due if such Securities matured on the Par Call Date (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 20 basis points; plus, in either case, accrued interest to the Redemption Date.

 

On or after the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus accrued interest on the Securities to be redeemed to the Redemption Date.

 

Securities called for redemption become due on the Redemption Date. Notices of redemption will be mailed at least 10 but not more than 60 days before the Redemption Date to each holder of record of the Securities to be redeemed at its registered address. The notice of redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the Redemption Price or, if not ascertainable, the manner of determining the Make-Whole Price and the place(s) that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the Company defaults in payment of the Make-Whole Price, interest will cease to accrue on any Securities that have been called for redemption at the Redemption Date. If less than all the Securities are redeemed at any time, the Trustee will

 


 

select the Securities to be redeemed on a pro rata basis or by any other method the Trustee deems fair and appropriate (or with respect to Securities in global form, by such method as the Depository may require).

 

For purposes of determining the Make-Whole Price, the following definitions are applicable:

 

“Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities, calculated as if the maturity date of such Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Securities.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by us to act as the Independent Investment Banker from time to time.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means March 15, 2029.

 

“Reference Treasury Dealer” means (i) each of Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities, an average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

Except as set forth in Section 5 and in this Section 6, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 


 

The Securities may be redeemed in part in a minimum principal amount of $2,000, or any integral multiple of $1,000 in excess thereof.

 

Any such redemption will also comply with Article Eleven of the Indenture.

 

7.                                      Change of Control Offer.

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Securities as described in Section 6, or a Special Mandatory Redemption Event has occurred prior to such date as described in Section 5, the Company shall make an offer (a “Change of Control Offer”) to each Holder of the Securities to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of Securities repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Securities repurchased to the date of repurchase, subject to the right of holders of record on the applicable record date to receive interest due on the next Interest Payment Date.

 

Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders of the Securities describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the applicable notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

 

Upon the Change of Control Payment Date, the Company shall, to the extent lawful:

 

·                                          accept for payment all Securities or portions of Securities properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

·                                          deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

 

·                                          deliver or cause to be delivered to the Trustee the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of Securities being repurchased.

 

The Company need not make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities if there has occurred and is continuing on the

 


 

Change of Control Payment Date an Event of Default under the Indenture, other than a default in the payment of the Change of Control Payment upon a Change of Control Triggering Event.

 

The Company will comply with the applicable requirements of Rule 14e-1 under the Securities Exchange Act of 1934, as amended (the ‘‘Exchange Act’’), and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with the repurchase of the Securities as a result of a Change of Control Triggering Event. To the extent that the provisions of any securities laws or regulations conflict with the Change of Control Offer provisions of this Security, the Company will comply with those securities laws and regulations and will not be deemed to have breached its obligations under the Change of Control Offer provisions of this Security by virtue of any such conflict.

 

For purposes of the Change of Control Offer provisions of the Securities, the following terms are applicable:

 

“Change of Control” means the occurrence of any of the following: (1) the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or more series of related transactions, of all or substantially all of the Company’s assets and the assets of its Subsidiaries, taken as a whole, to any person, other than the Company or one of its Subsidiaries; (2) the consummation of any transaction (including, without limitation, any merger or consolidation) the result of which is that any person becomes the beneficial owner (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of more than 50% of the outstanding Voting Stock of the Company or other Voting Stock into which the Company’s Voting Stock is reclassified, consolidated, exchanged or changed, measured by voting power rather than number of shares; (3) the Company consolidates with, or merges with or into, any person, or any person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding Voting Stock of the Company or the Voting Stock of such other person is converted into or exchanged for cash, securities or other property, other than any such transaction where the shares of the Voting Stock of the Company outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving person or any direct or indirect parent company of the surviving person, measured by voting power rather than number of shares, immediately after giving effect to such transaction; or (4) the adoption of a plan relating to the liquidation or dissolution of the Company.

 

Notwithstanding the preceding, a transaction will not be deemed to involve a Change of Control under clause (2) above if (i) the Company becomes a direct or indirect wholly-owned subsidiary of a holding company and (ii)(A) the direct or indirect holders of the Voting Stock of such holding company immediately following that transaction are substantially the same as the holders of Voting Stock of the Company immediately prior to that transaction or (B) immediately following that transaction no person (other than a holding company satisfying the requirements of this sentence) is the beneficial owner, directly or indirectly, of more than 50% of the Voting Stock of such holding company. The term ‘‘person,’’ as used in this definition, has the meaning given thereto in Section 13(d)(3) of the Exchange Act.

 

“Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Event.

 


 

“Fitch” means Fitch Inc. and its successors.

 

“Investment Grade Rating” means a rating equal to or higher than BBB- (or the equivalent) by Fitch, Baa3 (or the equivalent) by Moody’s and BBB- (or the equivalent) by S&P, and the equivalent investment grade credit rating from any replacement Rating Agency or Rating Agencies selected by the Company.

 

“Moody’s” means Moody’s Investors Service, Inc. and its successors.

 

“Rating Agencies” means (1) each of Fitch, Moody’s and S&P and (2) if any of Fitch, Moody’s or S&P ceases to rate the Securities or fails to make a rating of the Securities publicly available for reasons outside of the Company’s control, a ‘‘nationally recognized statistical rating organization’’ within the meaning of Section 3(a)(62) of the Exchange Act selected by the Company (as certified by a resolution of our Board of Directors) as a replacement agency for Fitch, Moody’s or S&P, or all of them, as the case may be.

 

“Rating Event” means the rating on the Securities is lowered by at least two of the three Rating Agencies and the Securities are rated below an Investment Grade Rating by at least two of the three Rating Agencies, in any case on any day during the period (which period will be extended so long as the rating of the Securities is under publicly announced consideration for a possible downgrade by any of the rating agencies) commencing 60 days prior to the first public notice of the occurrence of a Change of Control or the Company’s intention to effect a Change of Control and ending 60 days following consummation of such Change of Control.

 

“S&P” means S&P Global Ratings, a division of S&P Global Inc., and its successors.

 

“Voting Stock” means, with respect to any specified ‘‘person’’ (as that term is used in Section 13(d)(3) of the Exchange Act) as of any date, the capital stock of such person that is at the time entitled to vote generally in the election of the board of directors of such person.

 

8.                                      Denominations; Transfer; Exchange.

 

The Securities are issued in registered form, without coupons, in a minimum denomination of $2,000 and integral multiples of $1,000 in excess thereof. A Holder may register the transfer of, or exchange, Securities in accordance with the Indenture. The Securities Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture.

 

9.                                      Person Deemed Owners.

 

The registered Holder of a Security may be treated as the owner of it for all purposes.

 

10.                               Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture may be amended or supplemented, and any existing Event of Default or compliance with any provision may be waived, with the consent of the Holders of a majority in principal amount of the Outstanding Debt Securities of each series affected. Without consent of any Holder, the parties thereto may amend or supplement the

 


 

Indenture or the Securities to, among other things, cure any ambiguity, defect or inconsistency, or make any other change that does not adversely affect the interests of any Holder of a Security in any material respect. Any such consent or waiver by the Holder of this Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such Holder and upon all future Holders and owners of this Security and any Securities which may be issued in exchange or substitution herefor, irrespective of whether or not any notation thereof is made upon this Security or such other Securities.

 

11.                               Defaults and Remedies.

 

If an Event of Default with respect to the Securities occurs and is continuing, then in every such case the Trustee or the Holders of not less than 25% in principal amount of the Securities then Outstanding may declare the principal amount of all the Securities to be due and payable immediately in the manner and with the effect provided in the Indenture. Notwithstanding the preceding sentence, however, if at any time after such a declaration of acceleration has been made and before judgment or decree for payment of the money due has been obtained by the Trustee as provided in the Indenture, the Holders of a majority in principal amount of the Outstanding Securities, by written notice to the Company and to the Trustee, may rescind and annul such declaration and its consequences if (1) the Company has paid or deposited with the Trustee a sum sufficient to pay (A) all overdue interest on all Securities, (B) the principal of (and premium, if any, on) any Securities which has become due otherwise than by such declaration of acceleration and any interest thereon at the rate prescribed therefor herein, (C) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate prescribed therefor herein, and (D) all sums paid or advanced by the Trustee and the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel and (2) all Events of Default under the Indenture with respect to the Securities, other than the nonpayment of the principal of Securities which has become due solely by such declaration acceleration, shall have been cured or shall have been waived. No such rescission shall affect any subsequent Event of Default or shall impair any right consequent thereon. Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in aggregate principal amount of the Securities then outstanding may direct the Trustee in its exercise of any trust or power.

 

12.                               Trustee Dealings with Company.

 

The Trustee under the Indenture, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company and its Affiliates and any subsidiary of the Company’s Affiliates, and may otherwise deal with the Company and its Affiliates as if it were not the Trustee.

 

13.                               Authentication.

 

This Security shall not be valid until the Trustee or authenticating agent signs the certificate of authentication on the other side of this Security.

 


 

14.                               Abbreviations and Defined Terms.

 

Customary abbreviations may be used in the name of a Holder of a Security or an assignee, such as: TEN COM (tenant in common), TEN ENT (tenants by the entireties), JT TEN (joint tenants with right of survivorship and not as tenants in common), CUST (Custodian), and U/G/M/A (Uniform Gifts to Minors Act).

 

15.                               CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the Committee on Uniform Note Identification Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the accuracy of such number as printed on the Securities and reliance may be placed only on the other identification numbers printed hereon.

 

16.                               Absolute Obligation.

 

No reference herein to the Indenture and no provision of this Security or the Indenture shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Security in the manner, at the respective times, at the rate and in the coin or currency herein prescribed.

 

17.                               No Recourse.

 

No recourse under or upon any obligation, covenant or agreement contained in the Indenture or in any Security, or because of any indebtedness evidenced thereby, shall be had against any incorporator, past, present or future stockholder, officer or director, as such of the Company or of any successor, either directly or through the Company or of any successor, either directly or through the Company or any successor, under any rule of law, statute or constitutional provision or by the enforcement of any assessment or by any legal or equitable proceeding or otherwise, all such liability being expressly waived and released by the acceptance of the Security by the Holder and as part of the consideration for the issue of the Security.

 

18.                               Governing Law.

 

This Security shall be construed in accordance with and governed by the laws of the State of New York.

 

19.                               Guarantee.

 

The Securities will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee, dated as of May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Securities until release thereof as set forth in Section 6 of the Guarantee.

 


 

20.                              Satisfaction and Discharge.

 

The Securities will be subject to Section 401 of the Indenture; provided, however, that solely with respect to the Securities, the following sentence shall be added to the end of Section 401(1)(B) of the Indenture: “(provided that, upon any redemption that requires the payment of any make-whole or other premium, (x) the amount of cash that must be deposited shall be determined using an assumed applicable premium calculated as of the date of such deposit and (y) the Company shall deposit any deficit in trust on or prior to the Redemption Date as necessary to pay the applicable premium as determined by such date)”.

 


 

SCHEDULE OF EXCHANGES OF DEFINITIVE SECURITY

 

The following exchanges of a part of this Book-Entry Security for definitive Securities have been made:

 

Date of Exchange

 

Amount of
decrease in
Principal Amount
of this Book-Entry
Security

 

Amount of increase
in Principal
Amount of this
Book-Entry
Security

 

Principal Amount
of this Book-Entry
Security following
such decrease (or
increase)

 

Signature of
authorized officer
of Trustee or
Security Custodian

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Annex B

Resolutions of the Board of Directors

of Waste Management, Inc.

 

WHEREAS, there has been considered by the Board a draft of an Agreement and Plan of Merger, a summary of the principal terms of which has been previously provided to the Board, (the “Merger Agreement”) by and among the Company, Everglades Merger Sub Inc., a Delaware corporation and wholly-owned indirect subsidiary of the Company (“Merger Sub”) and Advanced Disposal Services, Inc., a Delaware corporation (“Advanced”), whereby, among other things, subject to the terms and conditions contained in, and as more fully described in, the Merger Agreement, Merger Sub will merge with and into Advanced (the “Merger”), with Advanced surviving the Merger as a wholly-owned indirect subsidiary of the Company (capitalized terms used but not defined herein shall have the meaning given such terms in the Merger Agreement);

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

WHEREAS, the Board resolved in August 2018 to authorize the Company to prepare and file a new registration statement with the Securities and Exchange Commission (the “SEC”) and to offer in one or more offerings an aggregate of $3,000,000,000 of securities without further action by the Board (the “August 2018 Authorization”);

 

WHEREAS, the Board desires to amend and restate the August 2018 Authorization to, among other things, provide for additional offerings of securities to finance the Merger Consideration;

 

WHEREAS, the Board desires to provide for potential offerings of debt securities denominated in Canadian dollars by the Company and/or its subsidiaries;

 

WHEREAS, the Company is party to that certain indenture, dated as of September 10, 1997 (as amended, restated or otherwise modified from time to time, the “Company Existing Indenture”), by and among the Company, The Bank of New York Mellon Trust Company, N.A., as successor trustee to Texas Commerce Bank National Association, and pursuant to the Company Existing Indenture, has issued, among other securities: (i) the Company’s 7.00% Senior Notes due 2028 (the “2028 Notes”), (ii) the Company’s 7.375% Senior Notes due 2029 (the “2029 Notes”), (iii) the Company’s 7.75% Senior Notes due 2032 (the “2032 Notes”), and (iv) the Company’s 6.125% Senior Notes due 2039 (the “2039 Notes”);

 

WHEREAS Waste Management Holdings, Inc., a wholly-owned subsidiary of the Company (“WMHI”), is a party to that certain indenture, dated as of June 1, 1993, by and among WMHI, and The Fuji Bank and Trust Company, as trustee (as amended, restated or otherwise modified from time to time, the “WMHI Existing Indenture”), and has issued, pursuant to the WMHI Existing Indenture, its 7.10% Senior Notes due 2026 (the “2026 Notes,” and together with the 2028 Notes, the 2029 Notes, the 2032 Notes and the 2039 Notes, the “Specified Existing Notes”); and

 

WHEREAS the Board desires to provide for the eventual redemption and/or refinancing of the Specified Existing Notes and deems it advisable to approve the Company’ pursuit of tender offers and/or redemption transactions with respect to the Specified Existing Notes.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

3.              Registration Statement; Securities Offerings.

 

NOW, THEREFORE, BE IT RESOLVED, that the Company is hereby authorized to prepare and file with the SEC a shelf registration statement on Form S-3 (the “New Registration Statement”), pursuant to the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder (the “Securities Act”), which New Registration Statement is anticipated to be filed with the SEC after the Company’s earnings announcement for the three months ended March 31, 2019 and may provide for the registration of, among other things, unsecured senior or subordinated debentures, notes or other evidences

 


 

of indebtedness of the Company (collectively “Registered Debt Securities”); common stock of the Company, par value $0.01 (“Company Common Stock”); warrants to purchase shares of Company Common Stock; shares of preferred stock in such series with such designations, powers, preferences and relative and other special rights and qualifications, limitations and restrictions as the Board of Directors may from time to time authorize; guarantees of securities by WMHI; and any units consisting of one or more of the foregoing (the Registered Debt Securities, Company Common Stock, warrants, preferred stock, guarantees and units eligible to be sold pursuant to the New Registration Statement are collectively referred to herein as the “Registered Securities”), to be issued from time to time;

 

RESOLVED FURTHER, that each of the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to issue, offer and sell an aggregate of up to $6,000,000,000 of Securities (as defined below) without further approval of the Board of Directors pursuant to the New Registration Statement or a Canadian Offering (as defined below), as applicable;

 

RESOLVED FURTHER, that authority to make new issuances of Registered Securities pursuant to the August 2018 Authorization shall be deemed rescinded and superseded hereby;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees (as established pursuant to these resolutions) be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and cause to be filed with the SEC any and all amendments (including, without limitation, post-effective amendments) or supplements to the New Registration Statement and any prospectus included therein and any additional documents which such officer or employee may deem necessary or desirable with respect to the registration and offering of the Registered Securities, and such amendments, supplements, registration statements and documents to be in such form as the officer or employee executing the same may approve, as conclusively evidenced by his execution thereof;

 

RESOLVED FURTHER, that the Chief Legal Officer of the Company be, and he hereby is, designated and appointed the agent for service of process on the Company under the Securities Act in connection with the New Registration Statement and any and all amendments and supplements thereto, with all powers incident to such appointment;

 

RESOLVED FURTHER, that any of the Authorized Officers be, and each of them hereby is, authorized, at any time and from time to time, on behalf of the Company, (i) to determine, subject to the limits that shall be set by the Board, the number of shares of Company Common Stock, preferred stock or other equity securities to be offered and sold by the Company pursuant to the New Registration Statement, including any shares underlying warrants or convertible Debt Securities, (ii) to authorize the reserve and issuance of such shares and (iii) to take any and all action and to do or cause to be done any and all things which may appear to any of the Authorized Officers to be necessary or advisable in order to authorize, offer, issue, and sell such shares of Company Common Stock, pursuant to the New Registration Statement and the applicable purchase agreement, which action could be taken or which things could be done by the Board;

 

RESOLVED FURTHER, that the Company is authorized to offer, issue and sell, or cause any subsidiary of the Company to offer, issue and sell, debt securities denominated in Canadian dollars (the “Canadian Notes,” together with any Canadian Notes Guarantees (as defined below) the “Canadian Securities,” and together with the Registered Securities, the “Securities”) in transactions exempt from registration under the Securities Act, on terms and conditions to be determined by the Authorized Officers from time to time (the “Canadian Offering”);

 

RESOLVED FURTHER, that the Authorized Officers, and each of them, shall have full authority to authorize and approve the terms of the Canadian Offering (including, without limitation, the aggregate amount to be sold, the initial offering price, the prices at which such Canadian Securities will be sold to the applicable Initial Purchasers (as defined below) and such other terms as may be necessary) and the final terms of the purchase agreement relating to the Canadian Offering (the “Purchase Agreement”), any guarantors of such Canadian Notes (collectively, the “Canadian Notes Guarantors”) and the initial

 


 

purchasers in connection with the Canadian Offering (the “Initial Purchasers”) and such other matters as the Authorized Officers, or any of them, shall determine to be necessary or advisable in connection with the issuance of the Canadian Securities and to carry out the purposes and intent of the foregoing resolutions;

 

RESOLVED FURTHER, that the Company is authorized to cause the Canadian Notes to be guaranteed on a senior secured basis (the “Canadian Notes Guarantees”) by the Canadian Notes Guarantors if advisable in the judgment of any of the Authorized Officers;

 

RESOLVED FURTHER, that the preparation and use of a preliminary offering memorandum relating to the Canadian Offering (the “Preliminary Offering Memorandum”) is hereby ratified, confirmed, authorized and approved, and that the Authorized Officers or any of them acting together or individually, and those other employees of the Company as any of them shall designate, are hereby authorized and directed in the name and on behalf of the Company to prepare a pricing supplement (the “Pricing Supplement”) in connection with the Canadian Offering, and the final offering memorandum (the “Final Offering Memorandum”) relating to the Canadian Offering, and any supplements or amendments thereto as any of the Authorized Officers deems necessary or appropriate in connection with the Canadian Offering, such approval to be conclusively evidenced by the distribution of such supplement or amendment by or on behalf of the Company to the Initial Purchasers;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be and hereby are authorized and directed in the name and on behalf of the Company to take any and all action which they may deem necessary or advisable in order to effect the registration or qualification of all or part of the Registered Securities to be registered under the Securities Act, and any and all action for the Securities to be eligible for offer and sale under the securities or Blue Sky laws of the states of the United States of America or similar laws and regulations of other jurisdictions, including Canada, and in connection therewith, to execute, acknowledge, verify, deliver, file and publish all such applications, reports, issuer’s covenants, resolutions, consents to service of process, or appointments of governmental officials for the purpose of receiving and accepting service of process on the laws, and to take any and all further action which they may deem necessary or advisable in order to maintain any such registration or qualification for as long as they deem the same to be in the best interest of the Company;

 

RESOLVED FURTHER, that the form of any additional resolutions required in connection with the appropriate qualification or registration of the Securities for offer and sale under such securities or Blue Sky laws, be and hereby is approved and adopted, provided the appropriate officers of the Company, on the advice of counsel, consider the adoption thereof necessary or advisable, in which case the Secretary or any Assistant Secretary of the Company is hereby directed to insert as an appendix hereto a copy of such resolutions, which shall thereupon be deemed to have been adopted by this Board of Directors with the same force and effect as if set out verbatim herein;

 

RESOLVED FURTHER, that any of the Authorized Officers or authorized employees be, and each of them hereby is, authorized to approve at any time and from time to time, the engagement of one or more investment banks to provide services in connection with any offering of Securities, one or more forms of underwriting or purchase agreement (and any related terms agreement) and agency agreement (and related purchase agreement) and any other agreement or agreements any of such persons may deem necessary or appropriate in connection with the arrangements for the purchase of any of the Securities, and that such persons be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such agreement or agreements in substantially the form approved by any of them, with such changes therein as the person executing the same may approve, as conclusively evidenced by the execution and delivery thereof, it being understood that, in the case of any terms agreement or purchase agreement referred to above, it shall not be necessary for any of the Authorized Officers to approve any individual agreement pursuant to which Securities are to be sold if the form thereof has previously been approved as provided in this resolution;

 

RESOLVED FURTHER, that any of the Authorized Officers may, at any time and from time to time, on behalf of the Company, authorize the issuance of one or more series of Securities under one or more indentures, within any limits that may be set by the Board, and in connection therewith establish, or,

 


 

if all of the Securities of such series may not be originally issued at one time, to the extent deemed appropriate, prescribe the manner of determining, within any limitations established by any of the Authorized Officers and subject in either case to the limitations set forth in these resolutions, all of the terms of such Securities;

 

RESOLVED FURTHER, that, in connection with any such series of Securities (but without limiting the authority hereinafter in these resolutions conferred with respect to the issuance of Securities of a series which may not all be originally issued at one time), any of the Authorized Officers is authorized at any time or from time to time to determine the price or prices to be received by the Company in any offering or sale of Securities of such series, any public offering price or prices thereof, any discounts to be allowed or commissions to be paid to any agent, dealer, initial purchaser or underwriter and any other terms of offering or sale of Securities of such series and to sell Securities of such series in accordance with any applicable purchase agreement or other agreement(s);

 

RESOLVED FURTHER, that, in connection with the issuance of any Securities of any series which may not be originally issued at one time (except as may be inconsistent with any action taken by any of the Authorized Officers, as herein provided, in connection with such series), and of the Authorized Officers may delegate any of its authority pursuant to these resolutions to any officer of the Company;

 

RESOLVED FURTHER, that, in connection with the issuance and sale of any Securities, that the Company may use the proceeds therefrom: (1) to fund the transactions contemplated by the Merger Agreement (including the redemption of outstanding indebtedness of Advanced) (2) to repay or refinance existing indebtedness of the Company or (3) for general corporate purposes as determined by the Authorized Officers, or any of them;

 

RESOLVED FURTHER, that, in connection with any such series of Securities, any of the Authorized Officers is authorized to approve any amendment, modification or supplement to the Company’s indentures and that any Authorized Officer be, and each of them hereby is, authorized to execute and deliver, in the name and on behalf of the Company, any such amendment, modification or supplement, substantially in the form approved by any Authorized Officer;

 

RESOLVED FURTHER, that the Company is authorized to (i) provide for the redemption or refinancing, in whole or in part, of the outstanding debt of Advanced in connection with the Merger, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or purchase, as applicable, and (ii) provide for the redemption or refinancing, in whole or in part, of the Specified Existing Notes, which may include one or more tender offers, consent solicitations or notices of redemption, as well as the payment of the applicable redemption prices (including premiums), plus accrued and unpaid interest, if any, to the date of redemption or repurchase, as applicable (the actions in immediately preceding clauses (i) and (ii) being referred to as “Liability Management Transactions”), and the Authorized Officers and authorized employees be, and each of them hereby is, authorized in the name and on behalf of the Company, to prepare and execute such documents and agreements as may be necessary to effectuate such actions;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to determine any and all terms and conditions of the Liability Management Transactions as the Authorized Officers may deem necessary, advisable or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers be, and they hereby are, authorized, in their sole and absolute discretion, subject to any limitations set forth in these resolutions, to cause the Company to consummate the Liability Management Transactions without further approval of the Board and to prepare and transmit one or more notices of redemption, offers to purchase and/or consent solicitation statements and any and all other documents in connection with the Liability Management Transactions to be transmitted to holders of the applicable securities;

 


 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to execute and deliver such other agreements (including indemnity agreements), documents, certificates, orders, requests and instruments as may be contemplated by the Company’s indentures or required by the trustee thereunder, the security registrar or any other agent of the Company under such indentures in connection therewith or as may be necessary or appropriate in connection with the issuance and sale of Securities thereunder;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them hereby is, authorized, subject to and in accordance with the Company’s indentures and any action taken by any of the Authorized Officers in connection therewith, from time to time to appoint or designate on behalf of the Company one or more trustees, security registrars, paying agents and transfer agents for each series of Securities, to rescind on behalf of the Company any such appointment or designation and to approve on behalf of the Company any change in the location of any office through which any such trustee, security registrar, paying agent or transfer agent acts, and in connection therewith to take such action and to make, execute and deliver, or cause to be made, executed and delivered, such agreements, instruments and other documents as any such officer may deem necessary or appropriate;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to such securities exchange or exchanges as the persons acting shall deem necessary or appropriate for the listing thereof of any of the Securities (including any Company Common Stock or preferred stock underlying any convertible Securities) and in connection therewith to appoint one or more listing agents and to prepare, or cause to be prepared, execute and file, or cause to be filed, an application or applications for such listing and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; that such officers or employees, or such other person as any such officer or employee may designate in writing, be, and each of them hereby is, authorized to appear before any official or officials or before any body of any such exchange, with authority to make such changes in such application, amendments, certificates, documents, letters and other instruments and to execute and deliver such agreements relative thereto, including, without limitation, listing agreements, fee agreements and indemnity agreements relating to the use of facsimile signatures as they, or any one of them, may deem necessary or appropriate in order to comply with the requirements of any such exchange or to effect such listing;

 

RESOLVED FURTHER, that the Authorized Officers and authorized employees be, and each of them hereby is, authorized, in the name and on behalf of the Company, to make application to the SEC for registration of any series of the Registered Securities under Section 12 or other applicable section of the Securities Exchange Act of 1934, and the Authorized Officers and authorized employees are hereby authorized to prepare or cause to be prepared, and to execute and file, or cause to be filed, with the SEC and any securities exchange an application or applications for such registration and any and all amendments thereto and any additional certificates, documents, letters and other instruments which any such officer or employee may deem necessary or desirable; and

 

RESOLVED FURTHER, that for purposes the resolutions in this Section 3, the term “Authorized Officers” shall be deemed to include, in addition to those officers identified above, the Chief Accounting Officer and the Treasurer of the Company and the term “authorized employees” shall mean either or both of the Vice President and General Counsel—Transactions and the Vice President and General Counsel—Securities & Governance of the Company.

 

[Provisions Unrelated to the Senior Notes Offering Have Been Withheld]

 

7.              Additional Actions.

 

NOW, THEREFORE, BE IT RESOLVED, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered, in accordance with the foregoing resolutions, in the name and on behalf of the Company, to prepare, execute and deliver any and all agreements, amendments, certificates, reports, applications, notices, instruments, schedules, statements,

 


 

consents, letters or other documents with respect to the matters contemplated by the foregoing resolutions, to certify as having been adopted by the Board any form of resolution required by any law, regulation or agency necessary or appropriate to effectuate the purpose and intent of these resolutions or any of them, to make any filings pursuant to federal, state and foreign laws, to pay all charges fees, taxes and other expenses and to do or cause to be done any and all such other acts and things as, in the opinion of any such Authorized Officer, may be necessary, appropriate or desirable in order to comply with the applicable laws and regulations of any jurisdiction (domestic or foreign), to issue press releases and engage in other communications, or otherwise in order to enable the Company to fully and promptly carry out the purposes and intent of the foregoing resolutions and to permit the matters contemplated thereby to be lawfully consummated;

 

RESOLVED FURTHER, that the Authorized Officers be, and each of them with full power to act without the others hereby is, authorized and empowered to retain, in the name and on behalf of the Company, such financial advisors, legal counsel and such other advisors, consultants or experts necessary or appropriate to carry out the actions contemplated in these resolutions, and to secure any appropriate advice and opinions from such advisors, consultants or experts, and to pay all fees and expenses incurred by the Company in connection with the transactions contemplated by the Merger Agreement and any actions or matters necessary or appropriate to give effect to the forgoing, including, but not limited to, all fees and expenses necessary or appropriate to effectuate the purpose and intent of the foregoing resolutions or any of them and the Merger Agreement and the transactions contemplated thereby and such other agreements and documents as may be executed by any Authorized Officer pursuant to authorization granted in these resolutions or to carry out the transactions contemplated thereby;

 

RESOLVED FURTHER, that each Authorized Officer may authorize any other officer, employee or agent of, or counsel to, the Company or any of its subsidiaries to take any and all actions and to execute and deliver any and all certificates, documents, agreements and instruments referred to in these resolutions in place of or on behalf of such Authorized Officer, with full power as if such Authorized Officer were taking such action himself or herself;

 

RESOLVED FURTHER, that the officers of the Company be, and each of them hereby is, authorized to take, or cause to be taken, any and all action which any such officer may deem necessary or desirable in order to carry out the purpose and intent of the foregoing resolutions or in order to perform, or cause to be performed, the obligations of the Company under the Securities, the New Registration Statement and any indenture, purchase agreement, or other agreement referred to herein, and, in connection therewith, to make, execute and deliver, or cause to be made, executed and delivered, all agreements, undertakings, documents, certificates, orders, requests or instruments in the name and on behalf of the Company as each such officer may deem necessary or appropriate; and

 

RESOLVED FURTHER, that any or all actions heretofore or hereafter taken by any officer or officers of the Company or any of its subsidiaries to effectuate or evidence the purpose and intent of the foregoing resolutions be, and hereby are, approved, ratified and confirmed as the act and deed of the Company or such subsidiary.

 


Exhibit 4.5

 

WASTE MANAGEMENT, INC.
Officers’ Certificate Delivered Pursuant to
Section 301 of the Indenture dated as of September 10, 1997

 

The undersigned, the Vice President and Treasurer, and the Vice President and Corporate Secretary of Waste Management, Inc. (the “Company”), hereby certify that:

 

1.                                      This Certificate is delivered to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), pursuant to Sections 102 and 301 of the Indenture dated as of September 10, 1997 between the Company, formerly known as USA Waste Services, Inc., and the Trustee in connection with the Company Order dated May 22, 2019 (the “Order”) for the authentication and delivery by the Trustee of $500,000,000 aggregate principal amount of 4.000% Senior Notes due 2039 (the “Notes”).

 

2.                                      The undersigned have read Sections 102, 103, 301 and 303 of the Indenture and the definitions in the Indenture relating thereto.

 

3.                                      The statements made herein are based either upon the personal knowledge of the persons making this Certificate or on information, data and reports furnished to such persons by the officers, counsel, department heads or employees of the Company who have knowledge of the facts involved.

 

4.                                      The undersigned have examined the Order, and they have read the covenants, conditions and provisions of the Indenture relating thereto.

 

5.                                      In the opinion of the persons making this Certificate, they have made such examination or investigation as is necessary to enable them to express an informed opinion as to whether or not all covenants and conditions provided for in the Indenture with respect to the Order have been complied with.

 

6.                                      All covenants and conditions (including all conditions precedent) provided in the Indenture to the authentication and delivery by the Trustee of $500,000,000 aggregate principal amount of the Notes have been complied with, and such Notes may be delivered in accordance with the Order as provided in the Indenture.

 

7.                                      The terms of the Notes (including the Form of Note) as set forth in Annex A to this Officers’ Certificate have been approved by officers of the Company as authorized by resolutions duly adopted on April 10, 2019 by the Board of Directors of the Company, copies of which are attached hereto as Annex B, are in full force and effect as of the date hereof.

 

[signature page follows]

 


 

IN WITNESS WHEREOF, the undersigned has hereunto executed this Officers’ Certificate as of the date first written above.

 

 

 

 

David L. Reed

Vice President and Treasurer

 

 

 

 

 

Courtney A. Tippy

Vice President and Corporate Secretary

 


 

Annex A

Terms of the Notes

 

Pursuant to authority granted by the Board of Directors of the Company on April 10, 2019 and the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019, the Company has approved the establishment, issuance, execution and delivery of a new series of Securities (as defined in the Indenture) to be issued under the Indenture dated as of September 10, 1997 (the “Indenture”), between the Company, formerly known as USA Waste Services, Inc., and The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association), as trustee (the “Trustee”), the terms of which are set forth below. Capitalized terms used but not defined herein are used herein as defined in the Indenture.

 

(1)                                 The title of the series of Securities shall be “4.000% Senior Notes due 2039” (the “Notes”).

 

(2)                                 The Notes shall be general unsecured, senior obligations of the Company.

 

(3)                                 The initial aggregate principal amount of the Notes that may be authenticated and delivered under the Indenture shall be $500,000,000 (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Section 304, 305, 306, 906 or 1107 of the Indenture); provided, however, that the authorized aggregate principal amount of such series may be increased before or after the issuance of any Notes of such series by a Board Resolution (or action pursuant to a Board Resolution) to such effect.

 

(4)                                 The principal amount of each Note shall be payable on July 15, 2039.

 

(5)                                 Each Note shall bear interest from May 22, 2019 at the fixed rate of 4.000% per annum; the Interest Payment Dates on which such interest shall be payable shall be January 15 and July 15, of each year, commencing January 15, 2020, until maturity unless such date falls on a day that is not a Business Day, in which case, such payment shall be made on the next day that is a Business Day. The Regular Record Date for the determination of Holders to whom interest is payable shall be January 1 or July 1, respectively, immediately preceding such date, as the case may be.

 

(6)                                 If a “Change of Control Triggering Event” (as defined in the Notes) occurs, each Holder of the Notes may require the Company to purchase all or a portion of such Holder’s Notes at a price equal to 101% of the principal amount, plus accrued interest, if any, to the date of purchase, on the terms and subject to the conditions set forth in the Notes.

 

(7)                                 The Notes are to be issued as Registered Securities only. Each Note is to be issued as a book-entry note (“Book-Entry Note”) but in certain circumstances may be represented by Notes in definitive form. The Book-Entry Notes shall be issued, in whole or in part, in the form of one or more Notes in global form as contemplated by Section 203 of the Indenture. The Depositary with respect to the Book-Entry Notes shall be The Depository Trust Company, New York, New York.

 


 

(8)                                 Payments of principal of, premium, if any, and interest due on the Notes representing Book-Entry Notes on any Interest Payment Date or at maturity will be made available to the Trustee by 11:00 a.m., New York City time, on such date, unless such date falls on a day which is not a Business Day, in which case such payments will be made available to the Trustee by 11:00 a.m., New York City time, on the next Business Day. As soon as possible thereafter, the Trustee will make such payments to the Depositary.

 

(9)                                 Before the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to the greater of (i) 100% of the principal amount of the Notes to be redeemed or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest thereon that would be due if the Notes matured on the Par Call Date (exclusive of interest accrued to the Redemption Date (as defined in the Notes) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield (as defined in the Notes) plus 20 basis points; plus, in either case, accrued interest to the Redemption Date. On or after the Par Call Date, the Notes will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Notes to be redeemed plus accrued interest on the Notes to be redeemed to the Redemption Date. “Par Call Date” means January 15, 2039.

 

(10)                          The Company shall have no obligation to redeem, purchase or repay the Notes pursuant to any mandatory redemption (other than with respect to a Special Mandatory Redemption Event), sinking fund or analogous provisions or at the option of a Holder thereof.

 

(11)                          The Notes will be subject to defeasance and discharge as contemplated by Section 1302 of the Indenture and to covenant defeasance under Section 1303 of the Indenture.

 

(12)                          The Notes shall be entitled to the benefit of the covenants contained in Sections 1008 and 1009 of the Indenture.

 

(13)                          The Bank of New York Mellon Trust Company, N.A. shall serve initially as Security Registrar for the Notes.

 

(14)                          The Notes shall be substantially in the form of Exhibit A hereto.

 

(15)                          The Notes will be fully and unconditionally guaranteed on a senior basis by the Company’s wholly owned subsidiary, Waste Management Holdings, Inc., pursuant to the terms and conditions of a Guarantee Agreement dated May 22, 2019 (the “Guarantee”). The amount of the Guarantee will be limited to the extent required under applicable fraudulent conveyance laws to cause the Guarantee to be enforceable. The terms and conditions of the Guarantee shall continue in full force and effect for the benefit of holders of the Notes until release thereof as set forth in Section 6 of the Guarantee.

 

(16)                          If the Company does not consummate the Merger on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), then, in either case, the Company shall redeem all of the

 


 

Outstanding Notes at a Redemption Price equal to 101% of the aggregate principal amount thereof, plus accrued and unpaid interest to, but excluding, the Redemption Date, on the terms and subject to the conditions set forth in the Notes. “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

(17)                          The Notes shall be subject to the satisfaction and discharge provisions set forth in Section 401 of the Indenture, as such provisions are supplemented or modified by the terms and conditions set forth in the Notes in accordance with the Indenture.

 


 

BOOK-ENTRY SECURITY

 

THIS SECURITY IS A BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

RGN

 

Principal Amount

 

 

 

 

WASTE MANAGEMENT, INC.

U.S. $                     ,
which may be decreased
by the Schedule of
Exchanges of Definitive
Security attached hereto

 

 

 

 

4.000% SENIOR NOTES DUE 2039

 

 

 

 

 

 

 CUSIP 94106L BJ7

 

WASTE MANAGEMENT, INC., a Delaware corporation (the “Company,” which term includes any successors under the Indenture hereinafter referred to), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the office or agency of the Company, the principal sum of                 Million ($               ) U.S. dollars, or such lesser principal sum as is shown on the attached Schedule of Exchanges of Definitive Security, on July 15, 2039 in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest at an annual rate of 4.000% payable on January 15 and July 15 of each year, to the person in whose name this Security is registered at the close of business on the record date for such interest, which shall be the preceding January 1

 


 

or July 1, respectively, payable commencing January 15, 2020, with interest accruing from May 22, 2019, or the most recent date to which interest has been paid.

 

Reference is made to the further provisions of this Security set forth on the reverse hereof. Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

 

The statements in the legends set forth above are an integral part of the terms of this Security and by acceptance hereof the Holder of this Security agrees to be subject to, and bound by, the terms and provisions set forth in each such legend.

 

This Security is issued in respect of a series of Securities of an initial aggregate of U.S. $500,000,000 in principal amount designated as the 4.000% Senior Notes due 2039 of the Company and is governed by the Indenture dated as of September 10, 1997, duly executed and delivered by the Company, formerly known as USA Waste Services, Inc., to The Bank of New York Mellon Trust Company, N.A. (the current successor to Texas Commerce Bank National Association) as trustee (the “Trustee”), as supplemented by Board Resolutions (as defined in the Indenture) (such Indenture and Board Resolutions, collectively, the “Indenture”). The terms of the Indenture are incorporated herein by reference. This Security shall in all respects be entitled to the same benefits as definitive Securities under the Indenture.

 

If and to the extent that any provision of the Indenture limits, qualifies or conflicts with any other provision of the Indenture that is required to be included in the Indenture or is deemed applicable to the Indenture by virtue of the provisions of the Trust Indenture Act of 1939, as amended, such required provision shall control.

 

The Company hereby irrevocably undertakes to the Holder hereof to exchange this Security in accordance with the terms of the Indenture without charge.

 


 

This Security shall not be valid or become obligatory for any purpose until the Certificate of Authentication hereon shall have been manually signed by the Trustee under the Indenture.

 

IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed under its corporate seal.

 

Dated:

WASTE MANAGEMENT, INC.,

 

a Delaware corporation

 

 

 

By:

 

 

 

David L. Reed

 

 

Vice President and Treasurer

 

 

 

 

 

 

Attest:

 

 

 

 

By:

 

 

 

Courtney A. Tippy

 

 

Vice President and Corporate Secretary

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture.

 

Date of Authentication:

The Bank of New York Mellon Trust Company, N.A., as Trustee

 

 

 

By:

 

 

 

Authorized Officer

 


 

REVERSE OF BOOK-ENTRY SECURITY

 

WASTE MANAGEMENT, INC.

 

4.000% SENIOR NOTES DUE 2039

 

This Security is one of a duly authorized issue of unsecured debentures, notes or other evidences of indebtedness of the Company (the “Debt Securities”) of the series hereinafter specified, all issued or to be issued under and pursuant to the Indenture, to which Indenture reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the Holders of the Debt Securities. The Debt Securities may be issued in one or more series, which different series may be issued in various aggregate principal amounts, may mature at different times, may bear interest (if any) at different rates, may be subject to different sinking, purchase or analogous funds (if any) and may otherwise vary as provided in the Indenture. This Security is one of a series designated as the 4.000% Senior Notes due 2039 of the Company, in initial aggregate principal amount of $500,000,000 (the “Securities”).

 

1.                                      Interest.

 

The Company promises to pay interest on the principal amount of this Security at the rate of 4.000% per annum.

 

The Company will pay interest semi-annually on January 15 and July 15 of each year (each an “Interest Payment Date”), commencing January 15, 2020. Interest on the Securities will accrue from the most recent date to which interest has been paid or, if no interest has been paid on the Securities, from May 22, 2019. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months. The Company shall pay interest (including post-petition interest in any proceeding under any applicable bankruptcy laws) on overdue installments of interest (without regard to any applicable grace period) and on overdue principal and premium, if any, from time to time on demand at the rate of 4.000% per annum, in each case to the extent lawful.

 

2.                                      Method of Payment.

 

The Company shall pay interest on the Securities (except Defaulted Interest) to the persons who are the registered Holders at the close of business on the Regular Record Date immediately preceding the Interest Payment Date. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) may be paid to the persons who are registered Holders at the close of business on a Special Record Date for the payment of such Defaulted Interest, or in any other lawful manner not inconsistent with the requirements of any securities exchange on which such Securities may then be listed if such manner of payment shall be deemed practicable by the Trustee, as more fully provided in the Indenture. Except as provided below, the Company shall pay principal and interest in such coin or currency of the United States of America as at the time of payment shall be legal tender for payment of public and private debts (“U.S. Legal Tender”). Payments in respect of a Book-Entry Security (including principal, premium, if any, and interest) will be made by wire transfer of immediately available funds to the accounts specified by the Depository. Payments in respect of Securities in definitive form (including principal, premium, if

 


 

any, and interest) will be made at the office or agency of the Company maintained for such purpose within the Borough of Manhattan, the City of New York, which initially will be at the corporate trust office of The Bank of New York Mellon, located at 101 Barclay Street, Floor 21W, New York, New York, 10286 or at the option of the Company, payment of interest may be made by check mailed to the Holders on the Regular Record Date or on the Special Record Date at their addresses set forth in the Security Register of Holders.

 

3.                                      Paying Agent and Registrar.

 

Initially, The Bank of New York Mellon Trust Company, N.A. will act as Paying Agent and Registrar. The Company may change any Paying Agent, Registrar or co-Registrar at any time upon notice to the Trustee and the Holders. The Company or any of its Subsidiaries may, subject to certain exceptions, act as Paying Agent, Registrar or co-Registrar.

 

4.                                      Indenture.

 

This Security is one of a duly authorized issue of Debt Securities of the Company issued and to be issued in one or more series under the Indenture.

 

Capitalized terms herein are used as defined in the Indenture unless otherwise defined herein. The terms of the Securities include those stated in the Indenture and all indentures supplemental thereto, those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended, as in effect on the date of the Indenture, and those terms stated in the Officers’ Certificate to the Trustee, duly authorized by resolutions of the Board of Directors of the Company on April 10, 2019 (the “Resolutions”) and the written consents of the Sole Director of Waste Management Holdings, Inc. on April 22, 2019 and May 8, 2019 (the “Consents”). The Securities are subject to all such terms, and Holders of Securities are referred to the Indenture, all indentures supplemental thereto, said Act, said Resolutions and said Consents and Officers’ Certificate for a statement of them. The Securities of this series are general unsecured obligations of the Company limited with an initial aggregate principal amount of $500,000,000.

 

5.                                      Special Mandatory Redemption.

 

If the Merger is not completed on or prior to July 14, 2020, or if, on or prior to such date, the Merger Agreement is terminated for any reason (each, a “Special Mandatory Redemption Event”), the Company shall redeem all of the Outstanding Securities in whole at a special mandatory Redemption Price (the “Special Mandatory Redemption Price”) equal to 101% of the aggregate principal amount of such Securities, plus accrued but unpaid interest on the principal amount of such Securities to, but not including, the Special Mandatory Redemption Date (as defined below).

 

Upon the occurrence of a Special Mandatory Redemption Event, the Company shall promptly (but in no event later than 5 Business Days following such Special Mandatory Redemption Event) notify the Trustee in writing of such event, and shall, no later than 5 Business Days following such notice to the Trustee, mail (or with respect to Securities in global form, to the extent permitted or required by applicable procedures or regulations of the Depository, send electronically) a notice of redemption to the registered address of each Holder of the Securities (such date of notification to the Holders, the “Special Mandatory Redemption Notice Date”) fixing

 


 

the date of such mandatory redemption, which date will be no earlier than 3 Business Days and no later than 30 days from the Special Mandatory Redemption Notice Date (such date, the “Special Mandatory Redemption Date”), in each case, in accordance with Section 106 of the Indenture. The Company shall notify each Holder in accordance with Section 106 of the Indenture that all of such Outstanding Securities shall be redeemed at the Special Mandatory Redemption Price on the Special Mandatory Redemption Date automatically and without any further action by the Holders of such Securities. At or prior to 12:00 p.m. (New York City time) on the Business Day immediately preceding the Special Mandatory Redemption Date, the Company shall deposit with the Trustee funds sufficient to pay the Special Mandatory Redemption Price for such Securities. If such deposit is made as provided above, all of the Outstanding Securities will cease to bear interest on and after the Special Mandatory Redemption Date.

 

Upon the occurrence of the closing of the Merger, the foregoing provisions regarding the Special Mandatory Redemption Event will cease to apply.

 

For purposes of this Section 5, “Merger Agreement” means the Agreement and Plan of Merger dated April 14, 2019 by and among the Company, Everglades Merger Sub Inc. and Advanced Disposal Services, Inc., as such agreement may be amended or modified from time to time, and “Merger” means the merger contemplated by the Merger Agreement.

 

6.                                      Optional Redemption.

 

Before the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price (the “Make-Whole Price”) equal to the greater of: (i) 100% of the principal amount of the Securities to be redeemed; or (ii) the sum, as calculated by the Company, of the present values of the remaining scheduled payments of principal and interest on the Securities that would be due if such Securities matured on the Par Call Date (exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the applicable Treasury Yield plus 20 basis points; plus, in either case, accrued interest to the Redemption Date.

 

On or after the Par Call Date, the Securities will be redeemable and repayable, at the option of the Company, at any time in whole, or from time to time in part, at a Redemption Price equal to 100% of the principal amount of the Securities to be redeemed plus accrued interest on the Securities to be redeemed to the Redemption Date.

 

Securities called for redemption become due on the Redemption Date. Notices of redemption will be mailed at least 10 but not more than 60 days before the Redemption Date to each holder of record of the Securities to be redeemed at its registered address. The notice of redemption for the Securities will state, among other things, the amount of Securities to be redeemed, the Redemption Date, the Redemption Price or, if not ascertainable, the manner of determining the Make-Whole Price and the place(s) that payment will be made upon presentation and surrender of Securities to be redeemed. Unless the Company defaults in payment of the Make-Whole Price, interest will cease to accrue on any Securities that have been called for redemption at the Redemption Date. If less than all the Securities are redeemed at any time, the Trustee will select the Securities to be redeemed on a pro rata basis or by any other method the Trustee deems

 


 

fair and appropriate (or with respect to Securities in global form, by such method as the Depository may require).

 

For purposes of determining the Make-Whole Price, the following definitions are applicable:

 

“Treasury Yield” means, with respect to any Redemption Date applicable to the Securities, the rate per annum equal to the semi-annual equivalent yield to maturity (computed as of the third Business Day immediately preceding such Redemption Date) of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the applicable Comparable Treasury Price for such Redemption Date.

 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities, calculated as if the maturity date of such Securities were the Par Call Date (the “Remaining Life”), that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of the Securities.

 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by us to act as the Independent Investment Banker from time to time.

 

“Comparable Treasury Price” means, with respect to any Redemption Date, (i) the average of the Reference Treasury Dealer Quotations for the Redemption Date, after excluding the highest and lowest of all Reference Treasury Dealer Quotations obtained, or (ii) if the Independent Investment Banker obtains fewer than four such Reference Treasury Dealer Quotations, the average of all Reference Treasury Dealer Quotations.

 

“Par Call Date” means January 15, 2039.

 

“Reference Treasury Dealer” means (i) each of Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC and Mizuho Securities USA LLC (and their respective successors), unless any of them ceases to be a primary U.S. government securities dealer in New York City (a “Primary Treasury Dealer”), in which case the Company will substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Company.

 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any Redemption Date for the Securities, an average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue for the Securities (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding such Redemption Date.

 

Except as set forth in Section 5 and in this Section 6, the Securities will not be redeemable prior to their Stated Maturity and will not be entitled to the benefit of any sinking fund.

 


 

The Securities may be redeemed in part in a minimum principal amount of $2,000, or any integral multiple of $1,000 in excess thereof.

 

Any such redemption will also comply with Article Eleven of the Indenture.

 

7.                                      Change of Control Offer.

 

If a Change of Control Triggering Event occurs, unless the Company has exercised its option to redeem the Securities as described in Section 6, or a Special Mandatory Redemption Event has occurred prior to such date as described in Section 5, the Company shall make an offer (a “Change of Control Offer”) to each Holder of the Securities to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Securities on the terms set forth herein. In a Change of Control Offer, the Company shall offer payment in cash equal to 101% of the aggregate principal amount of Securities repurchased (a “Change of Control Payment”), plus accrued and unpaid interest, if any, on the Securities repurchased to the date of repurchase, subject to the right of holders of record on the applicable record date to receive interest due on the next Interest Payment Date.

 

Within 30 days following any Change of Control Triggering Event or, at the Company’s option, prior to any Change of Control, but after public announcement of the transaction that constitutes or may constitute the Change of Control, the Company shall mail a notice to Holders of the Securities describing the transaction that constitutes or may constitute the Change of Control Triggering Event and offering to repurchase such Securities on the date specified in the applicable notice, which date shall be no earlier than 30 days and no later than 60 days from the date such notice is mailed (a “Change of Control Payment Date”). The notice may, if mailed prior to the date of consummation of the Change of Control, state that the Change of Control Offer is conditioned on the Change of Control Triggering Event occurring on or prior to the applicable Change of Control Payment Date.

 

Upon the Change of Control Payment Date, the Company shall, to the extent lawful:

 

·                                          accept for payment all Securities or portions of Securities properly tendered and not withdrawn pursuant to the Change of Control Offer;

 

·                                          deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Securities or portions of Securities properly tendered; and

 

·                                          deliver or cause to be delivered to the Trustee the Securities properly accepted together with an Officers’ Certificate stating the aggregate principal amount of Securities or portions of Securities being repurchased.

 

The Company need not make a Change of Control Offer upon the occurrence of a Change of Control Triggering Event if a third party makes such an offer in the manner, at the times and otherwise in compliance with the requirements for an offer made by the Company and the third party repurchases all Securities properly tendered and not withdrawn under its offer. In addition, the Company shall not repurchase any Securities if there has occurred and is continuing on the

 


 

Change of Control Payment Date an Ev