New Issue: Allied Waste prices $825 million in seven-, 10-year tranches

By Paul A. Harris

St. Louis, Jan. 21 - Allied Waste North America Inc. priced a combined $825 million of senior secured notes in two tranches (Ba3/BB-) Wednesday, a syndicate source said.

The Scottsdale, Ariz., waste services company sold $400 million of notes due Feb. 15, 2011 at par to yield 5¾%, or 221 basis points over Treasuries. Price talk was 5 7/8%.

The company also sold $425 million of notes due Feb. 15, 2014 at par to yield 6 1/8%, or 212 basis points over Treasuries. Price talk was in the area of 6¼%.

Citigroup, JP Morgan and UBS Investment Bank ran the books on the Rule 144A/Regulation S issues.

Proceeds will be used to call $825 million of the company's 7 7/8% senior notes due 2009.

Issuer:	Allied Waste North America North America Inc.
Amount:	$825 million
Security description:	Senior secured notes
Bookrunners:	Citigroup, JP Morgan, UBS Investment Bank
Pricing date:	Jan. 21
Settlement date:	Jan. 27
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Seven-year tranche
Amount:	$400 million
Maturity:	Feb. 15, 2011
Coupon:	5¾%
Price:	Par
Yield:	5¾%
Spread:	221 basis points
Call features:	Make-whole call at T+50 basis points
Equity clawback:	Until Feb. 15, 2007 for 33.3% at 105.75
Price talk:	5 7/8% area
10-year tranche
Amount:	$425 million
Maturity:	Feb. 15, 2014
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	212 basis points
Call features:	Make-whole call at T+50 basis points until Feb. 15, 2009, then at 103.063, 102.042, 101.021, par on Feb. 15, 2012 and thereafter
Equity clawback:	Until Feb. 15, 2007 for 33.3% at 106.125
Price talk:	6¼% area

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