WASTE MANAGEMENT, INC.
Officers’ Certificate Delivered Pursuant to
Section 301 of the Indenture dated as of September 10,
1997
The undersigned,
the Vice President — Finance and Treasurer, and the Corporate
Secretary of Waste Management, Inc. (the “Company”),
hereby certify that:
1. This
Certificate is delivered to The Bank of New York Mellon Trust
Company, N.A. (the current successor to Texas Commerce Bank
National Association), as trustee (the “Trustee”),
pursuant to Sections 102 and 301 of the Indenture dated as of
September 10, 1997 between the Company, formerly known as USA
Waste Services, Inc., and the Trustee in connection with the
Company Order dated February 26, 2009 (the
“Order”) for the authentication and delivery by the
Trustee of $450,000,000 aggregate principal amount of 7.375% Notes
due 2019 (the “Notes”).
2. The
undersigned have read Sections 102, 103, 301 and 303 of the
Indenture and the definitions in the Indenture relating
thereto.
3. The
statements made herein are based either upon the personal knowledge
of the persons making this Certificate or on information, data and
reports furnished to such persons by the officers, counsel,
department heads or employees of the Company who have knowledge of
the facts involved.
4. The
undersigned have examined the Order, and they have examined the
covenants, conditions and provisions of the Indenture relating
thereto.
5. In the
opinion of the persons making this Certificate, they have made such
examination or investigation as is necessary to enable them to
express an informed opinion as to whether or not all conditions
provided for in the Indenture with respect to the Order have been
complied with.
6. All
conditions precedent provided in the Indenture to the
authentication by the Trustee of $450,000,000 aggregate principal
amount of Notes have been complied with, and such Notes may be
delivered in accordance with the Order as provided in the
Indenture.
7. The terms
of the Notes (including the Form of Note) as set forth in Annex A
to this Officers’ Certificate have been approved by officers
of the Company as duly authorized by resolutions of the Board of
Directors of the Company as of August 25, 2006 and such
resolutions, copies of which are attached hereto as Annex B, are in
full force and effect as of the date hereof.
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IN WITNESS
WHEREOF, the undersigned has hereunto executed this Certificate as
of February 26, 2009.
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Cherie C.
Rice
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Vice President
— Finance and Treasurer
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Linda J.
Smith
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Corporate
Secretary
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Pursuant to
authority granted by the Board of Directors of the Company on
August 25, 2006 and the Sole Director of Waste Management
Holdings, Inc. on October 30, 2009 and February 17, 2009,
the Company has approved the establishment, issuance, execution and
delivery of a new series of Securities (as defined in the
Indenture) to be issued under the Indenture dated as of
September 10, 1997 (the “Indenture”), between the
Company, formerly known as USA Waste Services, Inc., and The Bank
of New York Mellon Trust Company, N.A. (the current successor to
Texas Commerce Bank National Association), as trustee (the
“Trustee”), the terms of which are set forth below.
Capitalized terms used but not defined herein are used herein as
defined in the Indenture.
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(1)
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The
title of the series of Securities shall be “7.375% Senior
Notes due 2019” (the “Notes”).
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(2)
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The
Notes shall be general unsecured, senior obligations of the
Company.
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(3)
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The
initial aggregate principal amount of the Notes that may be
authenticated and delivered under the Indenture shall be
$450,000,000 (except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of,
other Notes pursuant to Section 304, 305, 306, 907 or 1107 of
the Indenture); provided, however, that the authorized aggregate
principal amount of such series may be increased before or after
the issuance of any Notes of such series by a Board Resolution (or
action pursuant to a Board Resolution) to such effect.
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(4)
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The
principal amount of each Note shall be payable on March 11,
2019.
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(5)
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Each Note shall bear interest from
February 26, 2009 at the fixed rate of 7.375% per annum; the
Interest Payment Dates on which such interest shall be payable
shall be March 11 and September 11, of each year,
commencing September 11, 2009, until maturity unless such date
falls on a day that is not a Business Day, in which case, such
payment shall be made on the next day that is a Business Day. The
Regular Record Date for the determination of Holders to whom
interest is payable shall be March 1 or September 1,
respectively, immediately preceding such date, as the case may
be.
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(6)
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If
a “Change of Control Triggering Event” (as defined in
the Notes) occurs, each Holder of the Notes may require us to
purchase all or a portion of such Holder’s Notes at a price
equal to 101% of the principal amount, plus accrued interest, if
any, to the date of purchase, on the terms and subject to the
conditions set forth in the Notes.
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(7)
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The
Notes are to be issued as Registered Securities only. Each Note is
to be issued as a book-entry note (“Book-Entry Note”)
but in certain circumstances may be represented by Notes in
definitive form. The Book-Entry Notes shall be issued, in whole or
in part, in the form of one or more Notes in global form as
contemplated by Section 203 of the Indenture. The Depositary
with respect to the Book-Entry Notes shall be The Depository Trust
Company, New York, New York.
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(8)
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Payments of principal of, premium,
if any, and interest due on the Notes representing Book-Entry Notes
on any Interest Payment Date or at maturity will be made available
to the Trustee by 11:00 a.m., New York City time, on such
date, unless such date falls on a day which is not a Business Day,
in which case such payments will be made available to the Trustee
by 11:00 a.m., New York City time, on the next Business Day.
As soon as possible thereafter, the Trustee will make such payments
to the Depositary.
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(9)
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The
Notes will be redeemable, at the option of the Company, at any time
in whole, or from time to time in part, at a Redemption Price equal
to the greater of (i) 100% of the principal amount of the
Notes to be redeemed or (ii) the sum of the present value of
the remaining scheduled payments of principal and interest (at the
rate in effect on the date of calculation of the Redemption Price)
thereon (exclusive of interest accrued to the Redemption Date (as
defined in the Notes)) discounted to the Redemption Date on a
semiannual basis (assuming a 360 day year consisting of twelve
30-day months) at the applicable Treasury Yield (as defined in the
Notes) plus 50 basis points; plus, in either case, accrued interest
to the Redemption Date.
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(10)
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The
Company shall have no obligation to redeem, purchase or repay the
Notes pursuant to any mandatory redemption, sinking fund or
analogous provisions or at the option of a Holder
thereof.
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(11)
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The
Notes will be subject to defeasance and discharge as contemplated
by Section 1302 of the Indenture and to covenant defeasance
under Section 1303 of the Indenture.
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(12)
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The
Notes shall be entitled to the benefit of the covenants contained
in Sections 1008 and 1009 of the Indenture.
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(13)
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The
Bank of New York Mellon, on behalf (for the benefit) of The Bank of
New York Mellon Trust Company, N.A., shall serve initially as
Security Registrar for the Notes.
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(14)
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The
Notes shall be substantially in the form of Exhibit A
hereto.
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(15)
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The
Notes will be fully and unconditionally guaranteed on a senior
basis by the Company’s wholly-owned subsidiary, Waste
Management Holdings, Inc., pursuant to the terms and conditions of
a Guarantee Agreement dated February 26, 2009 (the
“Guarantee”). The amount of the Guarantee will be
limited to the extent required under applicable fraudulent
conveyance laws to cause the Guarantee to be enforceable. The terms
and conditions of the Guarantee shall continue in full force and
effect for the benefit of holders of the Notes until release
thereof as set forth in Section 6 of the Guarantee.
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ANNEX A
TO
TERMS OF NOTES
(Form of Note)
THIS SECURITY IS A
BOOK-ENTRY SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER
REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY OR A
NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR
SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY (OTHER
THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A
NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE
DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED
EXCEPT IN SUCH LIMITED CIRCUMSTANCES.
UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION
(“DTC”), TO THE COMPANY (AS DEFINED BELOW) OR ITS AGENT
FOR REGISTRATION FOR TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER
ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR
TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN.
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RGN-1
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Principal Amount
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U.S. $450,000,000,
which may be decreased
by the Schedule of
Exchanges of Definitive
Security attached hereto
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WASTE MANAGEMENT, INC.
7.375% SENIOR NOTES DUE 2019
WASTE MANAGEMENT,
INC., a Delaware corporation (the “Company,” which term
includes any successors under the Indenture hereinafter referred
to), for value received, hereby promises to pay to CEDE & CO.
or registered assigns, at the office or agency of the Company, the
principal sum of Four Hundred Fifty Million ($450,000,000) U.S.
dollars, or such lesser
principal sum
as is shown on the attached Schedule of Exchanges of Definitive
Security, on March 11, 2019 in such coin or currency of the
United States of America as at the time of payment shall be legal
tender for the payment of public and private debts, and to pay
interest at an annual rate of 7.375% payable on March 11 and
September 11 of each year, to the person in whose name this
Security is registered at the close of business on the record date
for such interest, which shall be the preceding March 1 or
September 1, respectively, payable commencing
September 11, 2009, with interest consisting of interest
accrued from February 26, 2009.
Reference is made
to the further provisions of this Security set forth on the reverse
hereof. Such further provisions shall for all purposes have the
same effect as though fully set forth at this place.
The statements in
the legends set forth above are an integral part of the terms of
this Security and by acceptance hereof the Holder of this Security
agrees to be subject to, and bound by, the terms and provisions set
forth in each such legend.
This Security is
issued in respect of a series of Securities of an initial aggregate
of U.S. $450,000,000 in principal amount designated as the 7.375%
Senior Notes due 2019 of the Company and is governed by the
Indenture dated as of September 10, 1997, duly executed and
delivered by the Company, formerly known as USA Waste Services,
Inc., to The Bank of New York Mellon Trust Company N.A. (the
current successor to Texas Commerce Bank National Association) as
trustee (the “Trustee”), as supplemented by Board
Resolutions (as defined in the Indenture) (such Indenture and Board
Resolutions, collectively, the “Indenture”). The terms
of the Indenture are incorporated herein by reference. This
Security shall in all respects be entitled to the same benefits as
definitive Securities under the Indenture.
If and to the
extent that any provision of the Indenture limits, qualifies or
conflicts with any other provision of the Indenture that is
required to be included in the Indenture or is deemed applicable to
the Indenture by virtue of the provisions of the Trust Indenture
Act of 1939, as amended, such required provision shall
control.
The Company hereby
irrevocably undertakes to the Holder hereof to exchange this
Security in accordance with the terms of the Indenture without
charge.
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This Security
shall not be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been manually
signed by the Trustee under the Indenture.
IN WITNESS
WHEREOF, the Company has caused this instrument to be duly executed
under its corporate seal.
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Dated: February
26, 2009
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WASTE
MANAGEMENT, INC.,
a Delaware corporation
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By:
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Cherie C.
Rice
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Vice President
and Treasurer
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Attest:
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By:
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Rick L
Wittenbraker
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Assistant
Secretary
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CERTIFICATE OF
AUTHENTICATION
This is one of the
Securities of the series designated therein referred to in the
within-mentioned Indenture.
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Date of
Authentication: February 26, 2009
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The Bank of New
York Mellon Trust
Company N.A., as Trustee
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By:
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Marcella
Burgess
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Assistant Vice
President
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7
REVERSE OF BOOK-ENTRY
SECURITY
7.375% SENIOR NOTES DUE
2019
This Security is
one of a duly authorized issue of unsecured debentures, notes or
other evidences of indebtedness of the Company (the “Debt
Securities”) of the series hereinafter specified, all issued
or to be issued under and pursuant to the Indenture, to which
Indenture reference is hereby made for a description of the rights,
limitations of rights, obligations, duties and immunities
thereunder of the Trustee, the Company and the Holders of the Debt
Securities. The Debt Securities may be issued in one or more
series, which different series may be issued in various aggregate
principal amounts, may mature at different times, may bear interest
(if any) at different rates, may be subject to different sinking,
purchase or analogous funds (if any) and may otherwise vary as
provided in the Indenture. This Security is one of a series
designated as the 7.375% Senior Notes due 2019 of the Company, in
initial aggregate principal amount of $450,000,000 (the
“Securities”).
The Company
promises to pay interest on the principal amount of this Security
at the rate of 7.375% per annum.
The Company will
pay interest semi-annually on March 11 and September 11
of each year (each an “Interest Payment Date”),
commencing September 11, 2009. Interest on the Securities will
accrue from the most recent date to which interest has been paid
or, if no interest has been paid on the Securities, from
February 26, 2009. Interest will be computed on the basis of a
360-day year consisting of twelve 30-day months. The Company shall
pay interest (including post-petition interest in any proceeding
under any applicable bankruptcy laws) on overdue installments of
interest (without regard to any applicable grace period) and on
overdue principal and premium, if any, from time to time on demand
at the rate of 7.375% per annum, in each case to the extent
lawful.
The Company shall
pay interest on the Securities (except Defaulted Interest) to the
persons who are the registered Holders at the close of business on
the Regular Record Date immediately preceding the Interest Payment
Date. Any such interest not so punctually paid or duly provided for
(“Defaulted Interest”) may be paid to the persons who
are registered Holders at the close of business on a Special Record
Date for the payment of such Defaulted Interest, or in any other
lawful manner not inconsistent with the requirements of any
securities exchange on which such Securities may then be listed if
such manner of payment shall be deemed practicable by the Trustee,
as more fully provided in the Indenture. Except as provided below,
the Company shall pay principal and interest in such coin or
currency of the United States of America as at the time of payment
shall be legal tender for payment of public and private debts
(“U.S. Legal Tender”). Payments in respect of a
Book-Entry Security (including principal, premium, if any, and
interest) will be made by wire transfer of immediately available
funds to the accounts
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specified by
the Depository. Payments in respect of Securities in definitive
form (including principal, premium, if any, and interest) will be
made at the office or agency of the Company maintained for such
purpose within the Borough of Manhattan, the City of New York,
which initially will be at the corporate trust office of The Bank
of New York Mellon, located at 101 Barclay Street, Floor 21W, New
York, New York, 10286 or at the option of the Company, payment of
interest may be made by check mailed to the Holders on the Regular
Record Date or on the Special Record Date at their addresses set
forth in the Security Register of Holders.
3. Paying
Agent and Registrar.
Initially, The
Bank of New York Mellon, on behalf (for the benefit) of The Bank of
New York Mellon Trust Company, N.A., will act as Paying Agent and
Registrar. The Company may change any Paying Agent, Registrar or
co-Registrar at any time upon notice to the Trustee and the
Holders. The Company or any of its Subsidiaries may, subject to
certain exceptions, act as Paying Agent, Registrar or
co-Registrar.
This Security is
one of a duly authorized issue of Debt Securities of the Company
issued and to be issued in one or more series under the
Indenture.
Capitalized terms
herein are used as defined in the Indenture unless otherwise
defined herein. The terms of the Securities include those stated in
the Indenture and all indentures supplemental thereto, those made
part of the Indenture by reference to the Trust Indenture Act of
1939, as amended, as in effect on the date of the Indenture, and
those terms stated in the Officers’ Certificate to the
Trustee, duly authorized by resolutions of the Board of Directors
of the Company on August 25, 2006 (the
“Resolutions”) and the written consents of the sole
Director of Waste Management Holdings, Inc. on October 30,
2008 and February 17, 2009 (the “Consents”). The
Securities are subject to all such terms, and Holders of Securities
are referred to the Indenture, all indentures supplemental thereto,
said Act, said Resolutions and said Consents and Officers’
Certificate for a statement of them. The Securities of this series
are general unsecured obligations of the Company limited with an
initial aggregate principal amount of $450,000,000.
The Securities
will be redeemable, at the option of the Company, at any time in
whole, or from time to time in part, at a Redemption Price (the
“Make-Whole Price”) equal to the greater of: (i) 100%
of the principal amount of the Securities to be redeemed; or
(ii) the sum of the present values of the remaining scheduled
payments of principal and interest (at the rate in effect on the
date of calculation of the Redemption Price) on the Securities
(exclusive of interest accrued to the Redemption Date) discounted
to the Redemption Date on a semi-annual basis (assuming a 360-day
year consisting of twelve 30-day months) at the applicable Treasury
Yield plus 50 basis points; plus, in either case, accrued interest
to the Redemption Date.
Securities called
for redemption become due on the Redemption Date. Notices of
redemption will be mailed at least 30 but not more than
60 days before the Redemption Date to each holder of record of
the Securities to be redeemed at its registered address. The notice
of redemption for the Securities will state, among other things,
the amount of Securities to be
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redeemed, the
Redemption Date, the manner of determining the Make-Whole Price and
the place(s) that payment will be made upon presentation and
surrender of Securities to be redeemed. Unless the Company defaults
in payment of the Make-Whole Price, interest will cease to accrue
on any Securities that have been called for redemption at the
Redemption Date. If less than all the Securities are redeemed at
any time, the Trustee will select the Securities to be redeemed on
a pro rata basis or by any other method the Trustee deems fair and
appropriate.
For purposes of
determining the Make-Whole Price, the following definitions are
applicable:
“Treasury
Yield” means, with respect to any Redemption Date applicable
to the Securities, the rate per annum equal to the semi-annual
equivalent yield to maturity (computed as of the third Business Day
immediately preceding such Redemption Date) of the Comparable
Treasury Issue, assuming a price for the Comparable Treasury Issue
(expressed as a percentage of its principal amount) equal to the
applicable Comparable Treasury Price for such Redemption
Date.
“Comparable
Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Securities that would be
utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt
securities of comparable maturity to the remaining term of the
Securities.
“Independent
Investment Banker” means any of Barclays Capital Inc., Credit
Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and
Greenwich Capital Markets, Inc. (and their respective successors),
or, if all of such firms are unwilling or unable to select the
applicable Comparable Treasury Issue, an independent investment
banking institution of national standing appointed by the Trustee
and reasonably acceptable to the Company.
“Comparable
Treasury Price” means, with respect to any Redemption Date,
(i) the bid price for the Comparable Treasury Issue
(exp
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