New Issue: Allied Waste $750 million 10-year notes yield 6 7/8%

By Michelle Anderson

Rochester, N.H., Feb. 26 - Allied Waste Industries, Inc. a wholly owned subsidiary of Allied Waste North America, Inc., priced $750 million 10-year senior notes (B1/BB-/B+) at par to yield 6 7/8% on Monday, according to an informed source.

The yield was printed at the wide end of the 6¾% to 6 7/8% price talk.

UBS Investment Bank was the left bookrunner for the notes, which have been registered with the Securities and Exchange Commission. Citigroup, Credit Suisse and JP Morgan were joint bookrunners.

Proceeds will be used to refinance $750 million of the company's outstanding 8½% senior notes due 2008.

Phoenix-based Allied Waste is a non-hazardous solid waste management company.

Issuer:	Allied Waste North America, Inc.
Amount:	$750 million
Maturity:	June 1, 2017
Security description:	Senior secured notes
Left bookrunner:	UBS Investment Bank
Joint bookrunners:	Citigroup, Credit Suisse, JP Morgan
Co-managers:	Banc of America Securities LLC, Deutsche Bank Securities, Wachovia Securities, BNP Paribas, Calyon Securities, Scotia Capital
Coupon:	6 7/8%
Price:	Par
Yield:	6 7/8%
Spread:	225 basis points
Call features:	Callable on June 1, 2012 at 103.438, June 1, 2013 at 102.292, June 1, 2014 at 101.146 and on June 1, 2015 at par.
Equity clawback:	Until June 1, 2010 for 33.33% at 106.875
Trade date:	Feb. 26
Settlement date:	March 12
Ratings:	Moody's: B1
	Standard & Poor's: BB-
	Fitch: B+
Distribution:	SEC registered
Price talk:	6¾% to 6 7/8%

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