Allied Waste $500 million notes talked in 8 3/8% area, to price late Thursday

By Paul A. Harris

St. Louis, Mo., Nov. 14 - Price talk in the 8 3/8% area emerged Wednesday on Allied Waste North America, Inc.'s offering of $500 million senior secured notes due 2008 (Ba3/BB-). The deal, via joint bookrunners J.P Morgan and Salomon Smith Barney, is set to price late Thursday, a syndicate source told Prospect News.

The Rule 144A notes are callable at any time, with a make-whole call at Treasuries plus 50 basis points, according to a syndicate source who added that they also contain an equity clawback of 33.33% for three years.

The Scottsdale, Arizona-based waste services company intends to use the proceeds from the new bonds to repay bank debt.

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