Allied Waste sees repaying $275 million debt in 2002

New York, March 22 - Allied Waste Industries, Inc. said it anticipates repaying $275 million of its debt in 2002 and more than that figure in 2003 and 2004.

The Scottsdale, Ariz. solid waste management company said in a filing with the Securities and Exchange Commission Friday it will use internally generated cash flow for the debt reductions. The repayments will be possible even with reinvestment in its business through capital expenditures and "tuck-in acquisitions," the company said.

Allied Waste added that it does not believe the current state of the economy will worsen in 2002 but noted that if it does internally generated cash flows could be less.

The forecast for debt repayments in 2003 and 2004 is dependent on the "strength and timing" of the economic recovery.

"These amounts could increase if economic recovery occurs sooner than we anticipate," Allied Waste continued, adding that they could also increase if the company raises more by selling assets than it spends on acquisitions or if it raises equity in the capital markets.

Allied Waste has a credit facility dating back to 1999 which was $4.358 billion in size at Dec. 31, 2001. On that date, the company had outstanding $3.058 billion in funded term loans and $508 million in letters of credit drawn on the $1.3 billion revolver leaving $792 million available.

"Significant elements" of the credit facility expire in July 2005 but Allied Waste said it intends to refinance it in late 2003 or early 2004. By that time, the company anticipates reducing the size by about $1.5 billion through cash flow from operating activities, asset divestitures in excess of acquisitions and capital market transactions. Capital market transactions could include either new capital or refinancing short-term maturities with longer-term borrowings or both, Allied Waste said in the SEC filing.

In addition to the credit facility, Allied Waste has $1.4 billion of senior notes issued in 2001, $2 billion of senior subordinated notes, $1.7 billion of senior notes issued in 1998 and $1.1 billion of debt assumed when it acquired BFI.

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