Allied Waste amends bank covenants

New York, Nov. 29 - Allied Waste Industries, Inc. said it amended covenants in its senior secured credit facility to take into account the "weakened economy."

The modifications were made at the same time as its Allied Waste North America, Inc. unit issued $750 million of 8.50% senior notes due 2008. Proceeds from the bond sale were used to repay parts of tranches A, B and C of the term loans.

Covenants affected by the credit facility amendments modify the leverage and interest coverage covenants, according to a filing with the Securities and Exchange Commission.

Required levels for the leverage covenant, measured as the ratio of total debt to EBITDA (earnings before interest, taxation, depreciation and amortization) are:

Period Maximum

Dec. 31, 2001 through March 30, 2003 5.75 to 1.00

March 31, 2003 through Dec. 30, 2003 5.50 to 1.00

Dec. 31, 2003 through June 29, 2004 5.25 to 1.00

June 30, 2004 through Dec. 30, 2004 5.00 to 1.00

Dec. 31, 2004 through Sept. 30, 2005 4.50 to 1.00

Oct. 1, 2005 through March 30, 2006 4.25 to 1.00

March 31, 2006 and thereafter 3.50 to 1.00

Required levels for the interest coverage, measured as the ratio of EBITDA to total interest are:

Period Minimum

Dec. 31, 2001 through Dec. 30, 2003 2.00 to 1.00

Dec. 31, 2003 through Dec. 30, 2004 2.25 to 1.00

Dec. 31, 2004 through Sept. 30, 2005 2.50 to 1.00

Oct. 1, 2005 through March 30, 2006 2.75 to 1.00

March 31, 2006 and thereafter 3.00 to 1.00

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