Allied Waste to sell $600 million 10-year notes in multi-billion financing

By Paul A. Harris

St. Louis, Feb. 22 - Allied Waste Industries Inc plans to sell $600 million of senior notes, the company said in a news release Tuesday.

According to market sources, specifics on the notes, which will have a 10-year maturity, were not immediately available.

No timing or bookrunning names have been heard, sources said. And the company did not return a telephone call from Prospect News.

Standard & Poor's has assigned its BB- rating to the proposed issue.

The Scottsdale, Ariz., waste disposal company is concurrently in the market with an off-the-shelf offering of three-year mandatory convertible preferred shares via bookrunners JP Morgan, Citigroup and Deutsche Bank Securities.

Allied Waste is also offering $100 million of common shares, with Banc of America Securities LLC, Citigroup and UBS Investment Bank arranging the stock offering.

In addition the company plans to obtain a $3.45 billion credit facility to be led by JP Morgan and Citigroup. The credit facility is expected to launch on Thursday.

Proceeds will be used to enhance the company's liquidity, extend its maturities, reduce interest costs and improve its capital structure while accelerating deleveraging.

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