08:14 AM EDT, 06/06/2024 (MT Newswires) -- GFL Environmental Inc. ( GFL ) -- trading at 52 week high levels in both Canada and the US amid reports of takeover interest -- announced Thursday that it is planning to commence, subject to market and other conditions, a private offering of US$500 million in aggregate principal amount of senior notes due 2032.

GFL in a statement said it intends to use the net proceeds from the offering of the notes, together with cash on hand, to redeem all of GFL's outstanding US$500 million aggregate principal amount of 4.250% Senior Secured Notes due 2025 and to pay related fees, premiums and accrued and unpaid interest on the 2025 Secured Notes. The Notes will be issued by a U.S. wholly owned subsidiary of GFL and will be guaranteed by GFL and certain of its other subsidiaries.

GFL said it is "opportunistically pursuing" the notes offering, "with a view to moving more of its debt from secured to unsecured, consistent with an investment grade capital structure, extending its related debt maturities and preserving balance sheet flexibility". It added the refinancing of the 2025 secured notes is expected to be leverage neutral. In addition, it is expected that any incremental interest expense incurred as a result of the notes offering will be offset by cash tax savings, resulting in an immaterial impact to GFL's free cash flow.

This comes just days after The Globe and Mail newspaper reported that the Toronto-based waste management company has retained J.P. Morgan to assess two buyout offers -- one for the entire business and another for its environmental services division, according to a source familiar with the matter.