Waste Management to Redeem $3 Billion of Debt in Blow to Holders

Waste Management Inc. plans to redeem $3 billion of bonds at a price far below recent trading levels, a blow to holders pushing the company to consider alternatives in an effort to avoid booking losses.

The company will buy back debt in connection with its acquisition of Advanced Disposal Services Inc., according to a Waste Management spokesman. The bonds, which were sold in May 2019, have special mandatory redemption language that allows Waste Management to redeem them should the deal not close by a certain date, July 14 in this case.

The takeover won’t be completed until the end ...