(Bloomberg) -- Some holders of a Stericycle Inc. bond have engaged legal counsel to negotiate better terms for a debt-exchange offer made by Waste Management Inc., which agreed in June to buy the medical-waste firm.
Lenders have consulted with lawyers from Glenn Agre Bergman & Fuentes, according to people familiar with the matter who asked not to be identified as the discussions are private.
The maximum $500 million exchange offer, unveiled last week, includes holders of the 2029 bond receiving the same face value in a Waste Management note with the same maturity and coupon plus as much as $5 in cash per $1,000 of bonds exchanged. The deadline to receive both is 5 p.m. New York time Sept. 23. The investor group is weighing a counteroffer of $7.50 for the cash compensation, the people added.
Waste Management declined to comment. Stericycle and Glenn Agre didn’t respond to requests for comment.
The acquisition values Stericycle at about $5.8 billion, and Waste Management and has entered into a $7.2 billion delayed-draw term loan to fund the deal.
--With assistance from Paula Seligson.
(Updates with Waste Management response in the fourth paragraph.)
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