WSP Global Inc. Secures $1 Billion in Senior Notes Offering
WSP Global Inc. prices $1 billion in senior notes
WSP Global Inc. (TSX: WSP) has priced a private offering of senior unsecured notes totalling $1 billion. The deal is split into two tranches: $525 million of notes due in 2029 and $475 million of notes maturing in 2034.
Key terms of the notes
The 2029 notes carry a fixed interest rate of 4.12%, while the 2034 notes carry a fixed rate of 4.754%. Interest will be paid semi-annually, giving investors predictable cash flows over the life of each series. The structure is straightforward: fixed coupons, set maturities, and regular interest payments.
Who’s running the deal
A syndicate led by CIBC Capital Markets, National Bank Financial Markets, and RBC Capital Markets is managing the offering. These firms are acting as joint bookrunners and co-lead private placement agents, supported by additional co-managers to place the notes with qualified investors.
What the proceeds will be used for
The $1 billion in gross proceeds is earmarked primarily to fund WSP’s acquisition of Power Engineers, Incorporated. The transaction supports WSP’s plan to expand its capabilities and services, and to stay competitive in the markets where it operates. Any remaining funds may be used for general corporate purposes consistent with that strategy.
Timing and expected impact of the acquisition
The acquisition is expected to close in the early fourth quarter, subject to regulatory approvals. Combining the two organizations is anticipated to bring deeper resources and expertise to WSP, reinforcing its presence in areas such as transportation, infrastructure, and environmental services.
Capital allocation and balance sheet focus
WSP intends to use its net proceeds prudently—either to complete the acquisition of Power Engineers, Incorporated or to reduce existing corporate debt if appropriate. The approach is designed to balance growth with financial discipline and maintain flexibility.
Ranking and rating
The notes will rank equally with all of WSP’s outstanding and future senior unsecured debt. DBRS Limited has assigned a provisional rating of BBB (high), signaling that the instruments sit within investment-grade territory as currently assessed.
WSP today and what’s ahead
WSP is a global professional services firm focused on delivering sustainable solutions across multiple sectors. With a team of more than 69,000 professionals and reported revenues of CAD $14.4 billion, the company emphasizes projects that help build resilient cities and environments. The planned acquisition and this financing align with that direction.
Frequently Asked Questions
Why is WSP issuing these notes now?
WSP is raising $1 billion primarily to fund its acquisition of Power Engineers, Incorporated, and to support general corporate purposes as needed. The financing aligns with its plan to grow while keeping a close eye on its balance sheet.
What are the interest rates and how often is interest paid?
The 2029 notes carry a 4.12% fixed rate, and the 2034 notes carry a 4.754% fixed rate. Interest is payable semi-annually, meaning investors receive two interest payments each year.
Who are the lead firms on the offering?
CIBC Capital Markets, National Bank Financial Markets, and RBC Capital Markets are serving as joint bookrunners and co-lead private placement agents, working with other co-managers to place the notes.
When is the acquisition of Power Engineers, Incorporated expected to close?
Closing is expected in the early fourth quarter, pending regulatory approvals. That timing remains subject to the completion of customary closing conditions.
How do these notes fit within WSP’s capital structure?
The notes are senior unsecured obligations that rank equally with WSP’s existing and future senior unsecured debt. They currently carry a provisional BBB (high) rating from DBRS Limited.
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