Latham & Watkins Represents HPS Investment Partners, LLC in US$300 Million Convertible Preferred Financing for GFL Environmental Inc.

Proceeds from the private placement will be used to fund the environmental services company’s acquisition pipeline.

October 05, 2021

GFL Environmental Inc., a leading North American diversified environmental services company, announced that it has entered into a definitive agreement with affiliates of HPS Investment Partners, LLC pursuant to which HPS has agreed to subscribe for up to 8,196,721 Series B Perpetual Convertible Preferred Share at US$36.60 per share (the Private Placement). GFL has the right to issue up to an aggregate amount of US$300.0 million of Preferred Shares under the Subscription Agreement until the end of the year. The Preferred Shares are initially convertible into 6,830,601 Subordinate Voting Shares, based on the initial liquidation preference and a conversion price of US$43.92 per share, representing an approximate 20% premium to  the 10 day volume weighted average price of the Subordinate Voting Shares. The proceeds from the Private Placement will be used, together with amounts drawn on the delayed draw term loan, to fund the Company's robust near-term acquisition pipeline.

Latham & Watkins LLP represents HPS Investment Partners in the financing with a capital markets team led by New York partners Stelios Saffos and Peter Sluka, with associates Andrew Blumenthal and Nicholas Reist. Advice was also provided on tax matters by New York partner Jocelyn Noll.

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