New Issue: Allied Waste upsizes 10-year notes to $450 million, yield 7 7/8%

By Paul A. Harris

St. Louis, April 4 - Allied Waste Industries, Inc. upsized to $450 million from $300 million its offering of senior notes due April 15, 2013 (Ba3/BB-/BB-) and priced them Friday at par to yield 7 7/8%, according to a syndicate source.

Price talk was for a yield in the 8% area.

JP Morgan, Credit Suisse First Boston and Deutsche Bank Securities Inc. were joint bookrunners. Banc One Capital Markets, BNP Paribas, Credit Lyonnais, Fleet Securities, Scotia Capital, Wachovia Securities and UBS Warburg were co-managers.

Proceeds from the off-the-shelf deal will be used to help fully repay amounts outstanding under existing credit facility.

The issuer is a Scottsdale, Ariz.-based waste services company. The deal was sold through the company's Allied Waste North America, Inc. subsidiary.

Issuer:	Allied Waste North America, Inc. subsidiary of Allied Waste Industries, Inc.
Amount:	$450 million (from $300 million)
Maturity:	April 15, 2013
Security description:	Senior notes
Bookrunners:	JP Morgan, Credit Suisse First Boston, Deutsche Bank Securities (joint)
Co-managers:	Banc One Capital Markets, BNP Paribas, Credit Lyonnais, Fleet Securities, Scotia Capital, Wachovia Securities, UBS Warburg
Coupon:	7 7/8%
Price:	Par
Yield:	7 7/8%
Call features:	Callable on April 15, 2008 at 103.938, then at 102.625, 101.313 declining to par on April 15, 2011 and thereafter
Equity clawback:	Until April 15, 2006 for 33% at 107.875
Settlement date:	April 9, 2003
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
	Fitch: BB-
Distribution:	Off-the-shelf
Cusip:	01958XAZ0
Price talk:	8% area

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