Nashville, April 8 - Allied Waste Industries Inc. sold $200 million of 30-year convertible notes at par to yield 4.25% with a 57% initial conversion premium via joint bookrunners Citigroup Global Markets Inc. and J.P. Morgan Securities.
The deal sold at the aggressive end of revised price talk for a 4.25% to 4.75% coupon and a 53% to 57% initial conversion premium, which had been tightened from original guidance for a 4.5% to 5.0% coupon and 53% to 57% initial conversion premium.
The Scottsdale, Ariz.-based trash hauler's unit, Allied Waste North America Inc., also sold an upsized $275 million of 6.375% seven-year senior notes and $400 million of 10-year 7.375% senior unsecured notes.
Proceeds from all the note offerings, plus a new $150 million term loan, are earmarked to fund the previously announced tender for $1 billion of the outstanding $1.4 billion of 10% guaranteed senior subordinated global notes due 2009.
Terms of the deal are:
| Issuer: | Allied Waste Industries Inc.
|
| Issue: | Convertible senior subordinated debentures
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| Bookrunners: | Citigroup Global Markets Inc. and J.P. Morgan Securities
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| Amount: | $200 million
|
| Greenshoe: | $30 million
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| Maturity: | April 15, 2034
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| Dividend: | 4.25%
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| Price: | Par
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| Yield: | 4.25%
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| Conversion premium: | 57%
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| Conversion price: | $20.43
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| Conversion ratio: | 48.9476
|
| Call: | Non-callable for 5 years
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| Put: | In years 7, 10, 15, 20 and 25
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| Ratings: | Moody's: B3
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| S&P: B+
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| Fitch: BB
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| Price talk: | Original: 4.5-5.0%, up 53-57%
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| Revised: 4.25-4.75%, up 53-57%
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| Pricing date: | April 7, after the close
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| Settlement date: | April 14
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| Distribution: | Registered
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