GFL Completes Acquisition of SECURE Waste Infrastructure with Equity and Debt Financing
GFL Environmental Inc. (NYSE: GFL) has completed its acquisition of SECURE Waste Infrastructure, a specialized waste management company in Western Canada and North Dakota. The deal had an enterprise value of C$6.4 billion at announcement, structured as 80% equity and 20% cash consideration. To fund the transaction, GFL issued approximately 75 million new shares and secured a US$1 billion senior term loan maturing in August 2033 with interest set at SOFR plus 200 basis points (approximately 5%). The acquisition expands GFL’s infrastructure footprint across more than 80 locations including landfills, recycling facilities, injection wells, crude oil terminals and storage. SECURE's management team will remain involved post-acquisition to maintain customer relationships during integration. The transaction introduces both growth opportunities and financial risks for GFL. While the acquisition enhances service offerings in Western Canada through a difficult-to-replicate network of assets, it also brings immediate equity dilution and increased leverage. The 75 million new shares could reduce earnings per share unless offset by significant incremental cash flow from SECURE’s operations. Additionally, the $1 billion term loan implies about US$50 million in annual interest costs before principal repayment or fees. GFL aims to maintain its credit rating while managing a target net leverage ratio of mid-3s based on adjusted long-term debt and run-rate EBITDA. The company plans to update 2026 guidance for SECURE with third-quarter results, leaving the initial financial impact unquantified at closing.
Topics: acquisition debt financing equity issuance waste infrastructure