Allied Waste postpones $250 million 10-year notes

By Paul A. Harris

St. Louis, Mo., Sept. 20--Allied Waste Industries, Inc. withdrew its Rule 144A offering of $250 million of 10-year senior notes (Ba3/BB-/BB-), according to a statement released Friday by the company.

Official price talk was announced Thursday as 9%-9¼%.

"We and our advisors believed an opportunity to access the high yield markets at favorable rates was available," stated the company's chief financial officer Tom Ryan in the release.

"The volatility in the market since we announced our intent on September 17 has resulted in an indicated coupon which we feel can be improved upon in a more stable market environment.

"We saw this as a modest opportunistic step toward achieving our longer term objectives, and with very little in the way of near term maturities, are pleased that we have the luxury of considerable time in meeting those objectives in an economical fashion," Ryan said. "We appreciate the consideration given to our offering by investors and the hard work of our underwriters."

The joint bookrunners were Deutsche Bank Securities Inc. and Credit Suisse First Boston, and the joint leads were JP Morgan and Salomon Smith Barney. Seven other firms were listed as co-managers.

The Scottsdale, Ariz. waste-hauler intended to use the proceeds to pay down term loans under the company's credit facility maturing in July 2005.

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