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Canada Pension Plan Invests $280 Million in Advanced Disposal

Date: August 3, 2016

Source: Advanced Disposal Services, Inc.

Advanced Disposal (Ponte Vedra, FL) has received an investment of $280 million from Canada Pension Plan Investment Board (CPPIB) in the form of convertible preferred equity of its owner entity Star Atlantic Waste Holdings II L.P., an investment partnership sponsored by Highstar Capital. The investment should pave the way for Advanced Disposal to move ahead with its previously planned initial public offering (IPO), hoping to raise as much as $471 million. It was postponed earlier this year due to what the company considered to have been unfavorable market conditions. The company's owner Highstar was itself purchased by Oaktree Capital Group in June 2014. It is likely that Oaktree is accelerating the process in order to monetize its portfolio of acquired assets. If the IPO commences, CPPIB's preferred equity will be converted into common stock. Michael Koen, senior principal, relationship investments of CPPIB has been appointed to the Board of Directors of Advanced Disposal.

Advanced Disposal is the fourth largest solid waste company in the U.S. and provides integrated, non-hazardous solid waste collection, transfer, disposal and recycling services to approximately 2.8 million residential customers, 215,000 commercial and industrial customers and more than 800 municipal customers across 16 U.S. states and the Bahamas.


PRESS RELEASE
August 3, 2016

Advanced Disposal Announces Investment by Canada Pension Plan Investment Board and Michael Koen Joining the Board of Directors

PONTE VEDRA, Fla. , Aug. 3, 2016 -- Advanced Disposal Services, Inc. , d/b/a Advanced Disposal, announced today that Canada Pension Plan Investment Board (CPPIB) has completed a $280 million investment in Series B Preferred Units of Star Atlantic Waste Holdings II, LP , which is an investment partnership sponsored by Highstar Capital and the principal owner of Advanced Disposal Services, Inc.

Advanced Disposal residential rear load vehicle in motion on municipal street.

Proceeds were used to redeem an investor's Series A partnership investment, and all remaining Series A Preferred Units were converted into Series B Preferred Units, which will result in lower preferred stock accrual expenses.

CPPIB's investment will automatically be converted into common stock if Advanced Disposal Services, Inc. completes a qualified initial public offering. In addition, Michael Koen , Senior Principal, Relationship Investments of CPPIB has been appointed to the Board of Directors of Advanced Disposal Services, Inc.

Prior to joining CPPIB's Relationship Investments group in 2009, Mr. Koen was a vice president and director in TD Bank's merchant banking group where he focused on mezzanine debt and structured equity investments. Prior to his seven years at TD Capital , Mr. Koen worked at Scotia Capital in the institutional equities and investment banking groups. Mr. Koen holds an MBA with high honors from the University of Chicago , Booth School of Business and a bachelor of arts from Queen's University, Canada .

"We are extremely pleased with the opportunity to partner with Canada Pension Plan Investment Board and for Michael Koen to join our board. CPPIB's long-term investment horizon makes them an ideal investor to work with as we continue to focus on generating profitable growth, enhancing cash flows, and creating value for our stakeholders," said Richard Burke , CEO.

Star Atlantic Waste Holdings II, LP was represented by Shearman & Sterling, LLP and Barclays , Credit Suisse and Deutsche Bank acted as placement agents.

Forward-Looking Statements

This press release contains "forward-looking" statements. These statements are subject to risks and uncertainties that could cause actual results to differ materially from those described in such forward-looking statements, including but not limited to the cautionary warnings and risk factors included in the most recently filed Form 10-K with the SEC .

About Advanced Disposal
Advanced Disposal brings fresh ideas and solutions to the business of a clean environment. As the fourth largest solid waste company in the U.S., we provide integrated, non-hazardous solid waste collection, recycling and disposal services to residential, commercial, industrial, and construction customers across 16 states and the Bahamas . Our team is dedicated to finding effective, sustainable solutions to preserve the environment for future generations. We welcome you to learn more at www.AdvancedDisposal.com or follow us on Facebook.

Contact:
Matthew Nelson
Advanced Disposal
(904) 737-7900
Matthew.Nelson@AdvancedDisposal.com.

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