WASTE MANAGEMENT INC 8-K

What Happened Waste Management Inc. announced Amendment No. 2 (dated March 20, 2026) to its Seventh Amended and Restated Revolving Credit Agreement (originally dated May 8, 2024). The Amendment revises the definitions of EBIT and EBITDA in the Credit Agreement to permit add‑backs for equity‑based compensation and interest accretion as non‑cash items when calculating the leverage ratio covenant in Section 9. The change is intended to align the covenant calculation with how some industry peers treat these non‑cash items.

Key Details

• Amendment No. 2 to the revolving credit agreement was executed March 20, 2026 and filed as Exhibit 10.1 to the 8‑K.
• The change affects the definitions of EBIT and EBITDA used solely for the leverage ratio financial covenant (Section 9).
• Permitted add‑backs: equity‑based compensation and interest accretion, treated as non‑cash adjustments.
• Parties to the Credit Agreement include the Company, Waste Management of Canada Corporation and WM Quebec Inc. (borrowers), Waste Management Holdings, Inc. (guarantor), and Bank of America, N.A. as Administrative Agent.

Why It Matters Allowing these non‑cash add‑backs will increase reported EBITDA for covenant calculations, which can lower the company’s calculated leverage ratio and provide more covenant headroom or borrowing flexibility under the credit facility. For investors, this is a technical change to how covenant metrics are computed—improving comparability with peers—but does not itself change cash flow, liquidity, or reported GAAP earnings.