Company: WCN
Filing Date: 2025-04-24
Form Type: 10-Q
Source: 0001558370-25-005319
Chunk: 10

Company: Waste Connections, Inc.
Filing Date: 2025-04-24
Form: 10-Q
Item: Part I, Item 3
Chunk 10
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Item 3.Quantitative and Qualitative Disclosures About Market Risk

In the normal course of business, we are exposed to market risk, including changes in interest rates, prices of certain commodities and foreign currency exchange rate risks. We use hedge agreements to manage a portion of our risks related to interest rates. While we are exposed to credit risk in the event of non-performance by counterparties to our hedge agreements, in all cases such counterparties are highly rated financial institutions and we do not anticipate non-performance under current market conditions. We do not hold or issue derivative financial instruments for trading purposes. We monitor our hedge positions by regularly evaluating the positions at market and by performing sensitivity analyses over the unhedged variable rate debt positions.

At March 31, 2025, our derivative instruments included four interest rate swap agreements that effectively fix the interest rate on the applicable notional amounts of our variable rate debt as follows (dollars in thousands of U.S. dollars): 

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​​​​​​​​​​​​​    ​​    Fixed    Variable    ​    ​​​Notional​Interest​Interest Rate​​​ExpirationDate Entered ​Amount​Rate Paid (a)​Received​Effective Date (b)​DateAugust 2017​$ 200,000  2.1230%  1-month Term SOFR November 2022 October 2025June 2018​$ 200,000​ 2.8480%  1-month Term SOFR​November 2022​October 2025June 2018​$ 200,000​ 2.8284%  1-month Term SOFR​November 2022​October 2025December 2018​$ 200,000​ 2.7715%  1-month Term SOFR​November 2022​July 2027

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(a)Plus applicable margin.

(b)In October 2022, we amended the reference rate in all of our outstanding interest rate swap contracts to replace One-Month LIBOR with One-Month Term SOFR and certain credit spread adjustments. We did not record any gains or losses upon the conversion of the reference rates in these interest rate swap contracts, and we believe these amendments will not have a material impact on our Condensed Consolidated Financial Statements.

Under derivatives and hedging guidance, the interest rate swap agreements are considered cash flow hedges for a portion of our variable rate debt, and we