By Paul A. Harris
St. Louis, April 7 - Allied Waste North America Inc. priced an upsized two-tranche Rule 144A issue of high-yield notes on Wednesday, according to a syndicate source.
The Scottsdale, Ariz., solid waste management company priced an upsized $275 million of seven-year senior secured notes (Ba3/BB-) at par to yield 6 3/8%. Price talk was in the area of 6½%.
UBS Investment Bank, Citigroup and Credit Suisse First Boston ran the books.
The company also sold $400 million of 10-year senior unsecured notes (B2/B+) at par to yield 7 3/8%. Price talk was in the area of 7 3/8%.
UBS Investment Bank, JP Morgan and Deutsche Bank Securities ran the books on the unsecured tranche.
Co-managers on both tranches were Banc One Capital Markets, BNP Paribas, Credit Lyonnais, Fleet Securities, Scotia Capital and Wachovia Securities.
Proceeds will be used to fund the tender for the company's 10% notes.
| Issuer: | Allied Waste North America Inc.
|
| Amount: | $675 million
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| Pricing date: | April 7
|
| Settlement date: | April 20
|
|
|
| Senior secured tranche
|
| Amount: | $275 million, increased from $250 million
|
| Maturity: | April 15, 2011
|
| Security description: | Senior secured notes
|
| Bookrunners: | UBS Investment Bank, Citigroup, Credit Suisse First Boston
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 271 basis points
|
| Call protection: | Make-whole call
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: BB-
|
| Price talk: | 6½% area
|
|
|
| Senior unsecured tranche
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| Amount: | $400 million
|
| Maturity: | April 15, 2014
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| Security description: | Senior unsecured notes
|
| Bookrunners: | UBS Investment Bank, JP Morgan, Deutsche Bank Securities
|
| Coupon: | 7 3/8%
|
| Price: | Par
|
| Yield: | 7 3/8%
|
| Spread: | 321 basis points
|
| Call protection: | Five years
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B+
|
| Price talk: | 7 3/8% area
|
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