By Paul A. Harris
St. Louis, March 3 - Allied Waste Industries Inc. priced a $600 million issue of 10-year senior secured notes (B2/BB-/B+) at par to yield 7¼%, according to a syndicate source.
Price talk was 7 1/8% to 7 3/8%.
JP Morgan, UBS Investment Bank, Credit Suisse First Boston and Wachovia Securities ran the books for the Rule 144A/Regulation S issue. Banc of America Securities LLC was a co-manager.
Proceeds will be used to redeem $600 million of the company's 7 5/8% senior notes due January 2006.
Allied Waste is concurrently in the market with $500 million of three-year mandatory convertible preferred stock, a $3.45 billion credit facility and an offering of common shares.
The prospective issuer is a Scottsdale, Ariz., waste disposal company.
| Issuer: | Allied Waste Industries Inc.
|
| Amount: | $600 million
|
| Maturity: | March 15, 2015
|
| Security description: | Senior secured notes
|
| Bookrunners: | JP Morgan, UBS Investment Bank, Credit Suisse First Boston, Wachovia Securities
|
| Co-manager: | Banc of America Securities LLC
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 286 basis points
|
| Call features: | Callable after March 15, 2010 at 103.625, 102.417, 101.208, par on and after March 15, 2013
|
| Equity clawback: | Until March 15, 2008 for 35% at 107.25
|
| Trade date: | March 3
|
| Settlement date: | March 9
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: BB-
|
| Fitch: B+
|
| Price talk: | 7 1/8%-7 3/8%
|
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