Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, May 28, 2021

Article Excerpt

GFL ENVIRONMENTAL INC., $39.39, symbol GFL on Toronto, is North America’s fourth-largest waste-management company. Based in Toronto, it has more than 15,000 employees operating throughout Canada, as well as 27 U.S. states. On March 2, 2020, the company went public after two aborted attempts, the most recent being in November 2019. In the first offering, it sold 75 million subordinate voting shares at $19 each, below the pre-IPO marketing range of $20 to $21; that raised $1.3 billion in net proceeds. In the second offering, it sold convertible debt instruments to raise a further $750 million. These pay the holder interest at a rate of 6% until March 15, 2023. At that time, the company will issue subordinate voting shares to satisfy, or close off, the debt. GFL’s CEO and founder Patrick Dovigi and his investment group own 27.7% of the company’s voting rights. Other large shareholders include BC Partners (29.9% of the votes) and the Ontario Teachers’ Pension Plan (11.7% of the votes). GFL…